Live Current Media, Inc. announced that it has entered into a securities purchase agreement for a senior convertible promissory note having an aggregate principal amount of $540,000 issued at discount 7.41% for gross proceeds of $500,000 and warrants to purchase up to 2,250,000 shares of the company's common stock on November 3, 2022. The transaction included participation from returning investor Mercer Street Global Opportunity Fund, LLC, a fund managed by Mercer Street Capital Partners, LLC. The convertible note matures 24 months after issuance, bears interest at a rate of 4% per annum and is convertible into shares of the company's common stock at an initial conversion price of $0.18 per share, subject to adjustment for certain stock splits, stock combinations and dilutive share issuances.

The company may prepay the convertible note at any time prior to the maturity date. The convertible notes contain a number of customary events of default. Additionally, the convertible notes are secured by all of the assets of the company, including a lien on and security interest in all of the issued and outstanding equity interests of the wholly-owned subsidiaries of the company, pursuant to a security agreement between the company and the lead investor under the Purchase Agreement.

The warrants are exercisable at an initial exercise price of $0.32 per share for a term ending on the 5 year anniversary of the date of issuance. The exercise price of the Warrants are subject to adjustment for certain stock splits, stock combinations and dilutive share issuances.