Selina Hospitality PLC announced it has entered into secured convertible debt instrument agreements for private placement on June 26, 2023. The transaction included participation from new investor Osprey Investments Limited. The ordinary shares of the company at an exercise price of $1.50 per share, which warrants will have a five-year term. The exercise price for the warrants granted to Osprey will be $1.50 per share, which price may be reset during the last three months of the term of the warrants. In connection with each Convertible Note investment, Osprey will receive 100% warrant coverage based on the number of shares into which the principal amount of each such note may convert. With regard to each PIPE investment made by Osprey, Osprey will receive a number of warrants corresponding to 50% of the ordinary shares it receives pursuant to its PIPE investment. For subsequent PIPE transactions, if executed, Osprey would receive a similar proportion of warrants for each investment and such warrants would be granted on the same terms. The warrants issued pursuant to the Subscription Warrant Agreement may be exercised from the first anniversary of the date of the PIPE Subscription Agreement and the Convertible Notes, to the earlier of the fifth anniversary of such date; liquidation of the Company; or redemption of the warrants by the company. The transaction has been approved by the board of directors of the company.

On the same date, the company received aggregate principal amount of $11,111,111 at a 10% discount, for a total subscription amount of $10,000,000 in its first tranche closing. In connection with the transaction, the investor will receive private warrants to acquire 7,407,407 ordinary shares of the company, equating to 100% warrant coverage based on the number of shares into which the Convertible Note may be converted, which warrants will have a term of five years and an exercise price of $1.50 per share, which price may be reset during the last three months of the term of the warrants.