BitNile Metaverse obtains $5.5M in secured debt financing

BitNile Metaverse sold $6.875 million of principal face amount senior secured convertible notes with an original issue discount to sophisticated investors, for gross proceeds to the Company of $5.5M. The Notes mature on April 27, 2024 and are secured by all of the assets of the Company, and certain of its subsidiaries, including BitNile.com. The Notes are convertible, at the investor’s option, into shares of the Company’s common stock at a conversion price of $0.1091 per share, subject to adjustment, with a floor price of $0.0168. In addition, the investors who participated in the Financing received warrants to purchase approximately 63 million shares of Common Stock, exercisable for five years at $0.1091 per share, subject to adjustment. The Company also provided the investors with registrations rights related to the shares of Common Stock issuable upon conversion of the Notes and exercise of the Warrants. The proceeds from the Notes will be used for the following purposes, marketing, the spinoffs of the Company’s subsidiaries, general working capital purposes.