Digerati Technologies, Inc. announced as previously disclosed, in November 2020, the company and Verve Cloud, Inc. formerly known as T3 Communications, Inc. (Verve Cloud), and Verve Cloud?s subsidiaries (Verve Cloud and its subsidiaries, collectively, the Verve Cloud Nevada Parties) entered into a credit agreement (the Credit Agreement) with Post Road Administrative LLC and its affiliate Post Road Special Opportunity Fund II LP (collectively, Post Road). The company is a party to certain sections of the Credit Agreement. Next Level Internet, Inc. became a Verve Cloud Nevada Party in February 2022.

As previously disclosed, through May 8, 2023, the Credit Agreement had been amended seven times. Pursuant to the Credit Agreement, as amended, the principal balance owed by the Verve Cloud Nevada Parties to Post Road and its affiliates, as of August 4, 2023, was approximately $35,020,452.20. On August 16, 2023, the Company, the Verve Cloud Nevada Parties, and Post Road entered into the Letter Agreement to the Credit Agreement (the Letter Agreement), with an effective date of August 4, 2023 (the Effective Date).

Pursuant to the Letter Agreement, the company, the Verve Cloud Nevada Parties, and Post Road have agreed to the capitalization of all accrued and unpaid cash interest due and payable by Verve Cloud as of the Effective Date. As a result of the capitalization of all accrued and unpaid cash interest and the amendment fee in consideration of Post Road?s agreement to enter into the Letter Agreement, the outstanding principal balance owed by the Verve Cloud Nevada Parties to Post Road and its affiliates, as of August 4, 2023, was approximately $36,937,372.42. Pursuant to the Letter Agreement, Post Road has agreed to Verve Cloud?s payment in kind of all interest accruing, and otherwise due and payable after the Effective Date until the Maturity Date.

Pursuant to the Letter Agreement, the Company, the Verve Cloud Nevada Parties, and Post Road have agreed to amend the Credit Agreement and the Term Loan C Note to replace the August 4, 2023 date therein with November 2, 2023, in order to extend the outside Maturity Date of the Term Loan C ninety (90) days from the Effective Date.