VANCOUVER, British Columbia, Might 09, 2023 (GLOBE NEWSWIRE) — Liquid Media Group Ltd. (Nasdaq: YVR) (the “Firm”, “Liquid Media” or “Liquid”) introduced right now that it acquired a discover of default from an institutional investor of a $3.125 million, 20% authentic problem low cost convertible debenture that was issued pursuant to a securities buy settlement and associated agreements between the Firm and the institutional investor on February 22, 2023.
Beneath the discover, the institutional investor claims that the Firm breached the securities buy settlement by failing to well timed file its Kind 20-F for the 12 months ended November 30, 2022, with the Securities and Change Fee. Additional, below a registration rights settlement entered into in connection therewith, the Firm did not well timed file an preliminary registration assertion registering the widespread shares underlying the convertible debenture. On account of the default below the convertible debenture, the institutional investor is entitled to sure treatments together with the suitable of the institutional investor to declare due and payable in money 150% of the excellent principal quantity of the convertible debenture, plus 150% of all different quantities, prices, bills and liquidated damages due in respect of the convertible debenture. Additional, (a) the rate of interest on the convertible debenture started accruing at an rate of interest equal to the lesser of 18% every year or the utmost charge permitted below relevant legislation, till such default is cured, (b) the institutional investor is entitled to brush the money acquired within the financial institution accounts of the Firm and its subsidiaries in an combination quantity equal to twenty% of the consolidated income of the Firm and its subsidiaries throughout every calendar month that the default is constant with out treatment, and (c) the conversion value (as outlined within the convertible debenture), has been adjusted to the decrease of (i) the conversion value on the date of the default, or (ii) a 60% low cost to the bottom VWAP of the widespread shares through the 5 (5) buying and selling day interval instantly previous to the conversion date, topic to any limitations set forth within the convertible debenture.
As well as, as a result of no registration assertion has but been filed with the SEC registering the widespread shares underlying the convertible debenture, efficient April 30, 2023, and on every month-to-month anniversary thereafter till the preliminary registration assertion is filed with the SEC, the Firm is required to pay the institutional investor an quantity equal to the product of two.0% multiplied by the combination subscription quantity paid by the institutional investor, as much as an combination of 25% of such subscription quantity. Any quantity not paid below the registration proper settlement is topic to curiosity thereon at a charge of 18% every year till such quantities, plus all such curiosity thereon, are paid in full.
The Firm is at present reviewing its rights below the securities buy and associated agreements.
About Liquid Media Group Ltd.
Liquid Media Group Ltd. (Nasdaq: YVR) is an leisure firm empowering unbiased IP creators. Liquid’s end-to-end answer allows skilled video (movie/TV and streaming) creation, packaging, financing, supply, and monetization, empowering IP creators to take their skilled content material from inception by way of all the course of to monetization.
Further info is offered at www.LiquidMediaGroup.co.
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