Exhibit 4.6
AMENDMENT NO. 1
TO
AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT
THIS AMENDMENT NO. 1 TO AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT (this “Amendment”), is made as of August 3, 2026, by and among General Fusion Group Ltd., a British Columbia limited company (formerly known as Spring Valley Acquisition Corp. III, a Cayman Islands exempted corporation) (the “Company”), Spring Valley Acquisition III Sponsor, LLC, a Delaware limited liability company (the “Sponsor”), and the other Holders party to the Agreement (as defined below) whose signatures appear on the signature pages hereto.
RECITALS
WHEREAS, the Company, the Sponsor, and the other Holders party thereto entered into that certain Amended and Restated Registration Rights Agreement, dated as of July 10, 2026 (the “Agreement”);
WHEREAS, pursuant to Section 6.3 of the Agreement, the provisions, covenants and conditions set forth in the Agreement may be amended upon the written consent of the Company and the Holders of at least a majority in interest of the Registrable Securities at the time in question; and
WHEREAS, the Company and the undersigned Holders, who collectively hold at least a majority in interest of the Registrable Securities, desire to amend the Agreement as set forth in this Amendment.
AGREEMENT
NOW, THEREFORE, in consideration of the foregoing recitals and the mutual promises set forth in this Amendment, and for other good and valuable consideration (the receipt and sufficiency of which are hereby acknowledged), the parties hereto agree as follows:
1.Capitalized Terms. Capitalized terms used but not otherwise defined in this Amendment shall have the respective meanings ascribed to such terms in the Agreement.
2.Amendment to Section 2.1.1(a) of the Agreement. Section 2.1.1(a) of the Agreement is hereby amended and restated in its entirety to read as follows:
“(a)Subject to compliance by the Holders with subsection 3.3, the Company shall prepare and file or cause to be prepared and filed with the Commission, as soon as practicable (and in any event no later than August 25, 2026) (the “Filing Deadline”), a Registration Statement on Form F-3 or similar short form registration statement that may be available at such time or its successor form, or, if the Company is ineligible to use Form F-3, a Registration Statement on Form F-1, for an offering to be made on a continuous
basis pursuant to Rule 415 of the Securities Act registering the resale from time to time pursuant to any method or combination of methods legally available to, and requested by, the Holders of all of the Registrable Securities (determined as of two (2) Business Days prior to such submission or filing and assuming that (i) all shares of Series A Preferred Shares are converted into Common Shares at a conversion price equal to the Floor Price and (ii) all Investor Warrants are exercised in full at an exercise price equal to the Floor Price) that are not then covered by an effective resale registration statement (the “Resale Shelf Registration Statement”). The Company shall use commercially reasonable efforts to cause the Resale Shelf Registration Statement to be declared effective as soon as practicable after filing, but in any event no later than the earlier of (i) ninety (90) calendar days (or one hundred twenty (120) calendar days if the Commission notifies the Company that it will “review” the Registration Statement) after the Closing Date and (ii) the tenth (10th) Business Day after the date the Company is notified (orally or in writing, whichever is earlier) by the Commission that such Registration Statement will not be “reviewed” or will not be subject to further review (such deadline the “Effectiveness Deadline”), provided, that if the Filing Deadline or Effectiveness Deadline falls on a Saturday, Sunday or other day that the Commission is closed for business, the Filing Deadline or Effectiveness Deadline, as the case may be, shall be extended to the next Business Day on which the Commission is open for business, and, once effective, to keep the Resale Shelf Registration Statement continuously effective under the Securities Act at all times until the expiration of the Effectiveness Period. In the event that the Company files a Form F-1 pursuant to this Section 2.1, the Company shall use commercially reasonable efforts to convert the Form F-1 to a Form F-3 as soon as practicable after the Company is eligible to use Form F-3 and have the Resale Shelf Registration Statement on Form F-3 declared effective as promptly as practicable.”
3.Full Force and Effect. Except as expressly amended by this Amendment, all other terms, covenants and conditions of the Agreement shall remain in full force and effect and are hereby ratified and confirmed in all respects.
4.Governing Law; Venue; Jury Trial Waiver. This Amendment shall be governed by, and construed in accordance with, the laws of the State of New York, without regard to the choice or conflict of law provisions thereof, consistent with Section 6.9 of the Agreement. The provisions of Sections 6.10 (Consent to Jurisdiction; Venue; Service) and 6.11 (Waiver of Trial by Jury) of the Agreement are hereby incorporated by reference into this Amendment, mutatis mutandis, and shall apply to this Amendment as if set forth herein in full.
5.Counterparts. This Amendment may be executed in two or more counterparts (including facsimile or PDF counterparts), each of which shall be deemed an original, and all of which together shall constitute one and the same instrument. Counterparts may be delivered via facsimile, electronic mail (including any electronic signature complying with the U.S. federal ESIGN Act of 2000, the Uniform Electronic Transactions Act, the Electronic Signatures and Records Act, or other applicable law, e.g., www.docusign.com) or other transmission method, and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes.
[Signature page to follow]
IN WITNESS WHEREOF, the parties hereto have executed this Amendment No. 1 to Amended and Restated Registration Rights Agreement as of the date first written above.
COMPANY:
GENERAL FUSION GROUP LTD.
By: | /s/ Greg Twinney | |
Name: | Greg Twinney | |
Title: | Chief Executive Officer | |
HOLDERS:
SPRING VALLEY ACQUISITION III SPONSOR, LLC
By: | /s/ Jeff Schramm | |
Name: | Jeff Schramm | |
Title: | Chief Financial Officer | |
ALYESKA MASTER FUND, L.P.
By: | /s/ Jason A. Bragg | |
Name: | Jason A. Bragg | |
Title: | Chief Financial Officer | |
Exhibit 4.7
AMENDMENT NO. 2
TO
AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT
THIS AMENDMENT NO. 2 TO AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT (this “Amendment”), is made as of August 21, 2026, by and among General Fusion Group Ltd., a British Columbia limited company (formerly known as Spring Valley Acquisition Corp. III, a Cayman Islands exempted corporation) (the “Company”), Spring Valley Acquisition III Sponsor, LLC, a Delaware limited liability company (the “Sponsor”), and the other Holders party to the Agreement (as defined below) whose signatures appear on the signature pages hereto.
RECITALS
WHEREAS, the Company, the Sponsor, and the other Holders party thereto entered into that certain Amended and Restated Registration Rights Agreement, dated as of July 10, 2026, which was subsequently amended by that certain Amendment No. 1 to Amended and Restated Registration Rights Agreement, dated as of August 3, 2026 (as amended, the “Agreement”);
WHEREAS, pursuant to Section 6.3 of the Agreement, the provisions, covenants and conditions set forth in the Agreement may be amended upon the written consent of the Company and the Holders of at least a majority in interest of the Registrable Securities at the time in question; and
WHEREAS, the Company and the undersigned Holders, who collectively hold at least a majority in interest of the Registrable Securities, desire to amend the Agreement as set forth in this Amendment.
AGREEMENT
NOW, THEREFORE, in consideration of the foregoing recitals and the mutual promises set forth in this Amendment, and for other good and valuable consideration (the receipt and sufficiency of which are hereby acknowledged), the parties hereto agree as follows:
1.Capitalized Terms. Capitalized terms used but not otherwise defined in this Amendment shall have the respective meanings ascribed to such terms in the Agreement.
2.Amendment to Section 2.1.1(a) of the Agreement. Section 2.1.1(a) of the Agreement is hereby amended and restated in its entirety to read as follows:
“(a)Subject to compliance by the Holders with subsection 3.3, the Company shall prepare and file or cause to be prepared and filed with the Commission, as soon as practicable (and in any event no later than September 8, 2026) (the “Filing Deadline”), a Registration Statement on Form F-3 or similar short form registration statement that may be available at such time or its successor form, or, if the Company is ineligible to use Form
F-3, a Registration Statement on Form F-1, for an offering to be made on a continuous basis pursuant to Rule 415 of the Securities Act registering the resale from time to time pursuant to any method or combination of methods legally available to, and requested by, the Holders of all of the Registrable Securities (determined as of two (2) Business Days prior to such submission or filing and assuming that (i) all shares of Series A Preferred Shares are converted into Common Shares at a conversion price equal to the Floor Price and (ii) all Investor Warrants are exercised in full at an exercise price equal to the Floor Price) that are not then covered by an effective resale registration statement (the “Resale Shelf Registration Statement”). The Company shall use commercially reasonable efforts to cause the Resale Shelf Registration Statement to be declared effective as soon as practicable after filing, but in any event no later than the earlier of (i) ninety (90) calendar days (or one hundred twenty (120) calendar days if the Commission notifies the Company that it will “review” the Registration Statement) after the Closing Date and (ii) the tenth (10th) Business Day after the date the Company is notified (orally or in writing, whichever is earlier) by the Commission that such Registration Statement will not be “reviewed” or will not be subject to further review (such deadline the “Effectiveness Deadline”), provided, that if the Filing Deadline or Effectiveness Deadline falls on a Saturday, Sunday or other day that the Commission is closed for business, the Filing Deadline or Effectiveness Deadline, as the case may be, shall be extended to the next Business Day on which the Commission is open for business, and, once effective, to keep the Resale Shelf Registration Statement continuously effective under the Securities Act at all times until the expiration of the Effectiveness Period. In the event that the Company files a Form F-1 pursuant to this Section 2.1, the Company shall use commercially reasonable efforts to convert the Form F-1 to a Form F-3 as soon as practicable after the Company is eligible to use Form F-3 and have the Resale Shelf Registration Statement on Form F-3 declared effective as promptly as practicable.”
3.Full Force and Effect. Except as expressly amended by this Amendment, all other terms, covenants and conditions of the Agreement shall remain in full force and effect and are hereby ratified and confirmed in all respects.
4.Governing Law; Venue; Jury Trial Waiver. This Amendment shall be governed by, and construed in accordance with, the laws of the State of New York, without regard to the choice or conflict of law provisions thereof, consistent with Section 6.9 of the Agreement. The provisions of Sections 6.10 (Consent to Jurisdiction; Venue; Service) and 6.11 (Waiver of Trial by Jury) of the Agreement are hereby incorporated by reference into this Amendment, mutatis mutandis, and shall apply to this Amendment as if set forth herein in full.
5.Counterparts. This Amendment may be executed in two or more counterparts (including facsimile or PDF counterparts), each of which shall be deemed an original, and all of which together shall constitute one and the same instrument. Counterparts may be delivered via facsimile, electronic mail (including any electronic signature complying with the U.S. federal ESIGN Act of 2000, the Uniform Electronic Transactions Act, the Electronic Signatures and Records Act, or other applicable law, e.g., www.docusign.com) or other transmission method, and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes.
IN WITNESS WHEREOF, the parties hereto have executed this Amendment No. 2 to Amended and Restated Registration Rights Agreement as of the date first written above.
COMPANY:
GENERAL FUSION GROUP LTD.
By: | /s/ Greg Twinney | |
Name: | Greg Twinney | |
Title: | Chief Executive Officer | |
HOLDERS:
SPRING VALLEY ACQUISITION III SPONSOR, LLC
By: | /s/ Jeff Schramm | |
Name: | Jeff Schramm | |
Title: | Chief Financial Officer | |
ALYESKA MASTER FUND, L.P.
By: | /s/ Jason A. Bragg | |
Name: | Jason A. Bragg | |
Title: | Chief Financial Officer | |
Exhibit 4.15
THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFER SET FORTH IN A LOCK-UP LETTER AGREEMENT, EFFECTIVE AS OF JULY 10, 2026, AS AMENDED. A COPY OF SUCH LOCK-UP AGREEMENT WILL BE FURNISHED WITHOUT CHARGE BY THE COMPANY TO THE HOLDER HEREOF UPON WRITTEN REQUEST.
UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF MUST NOT TRADE THE SECURITY BEFORE THE DATE THE COMPANY BECAME A REPORTING ISSUER IN ANY PROVINCE OR TERRITORY OF CANADA.
GENERAL FUSION GROUP LTD.
WARRANT CERTIFICATE
(Warrants to Purchase Common Shares)
Warrant Certificate No. 026-C-[●]
THIS IS TO CERTIFY THAT, for value received, BDC Capital Inc. (the “Holder”) is entitled to subscribe for and purchase from GENERAL FUSION GROUP LTD. (the “Company”) [●] Common Shares upon and subject to the further terms, conditions and adjustments set forth in the Terms and Conditions attached hereto as Schedule A and incorporated by reference and deemed to be part hereof.
The Warrants may be exercised at the office of Company at 6020 Russ Baker Way, Richmond, BC V7B 1B4, Canada, Attention: Rob Crystal, Senior Vice President, Finance, or such other address as the Company may from time to time in writing direct (the “Exercise Location”).
Except as otherwise indicated, all capitalized terms used herein have the definitions set out in the Terms and Conditions.
This Warrant is exercisable after the Issue Date.
IN WITNESS WHEREOF the Company has caused this Warrant to be executed by its duly authorized officer.
DATED: September [●], 2026.
GENERAL FUSION GROUP LTD. | | |
| | |
Per: | | |
Name: | | |
Title: Authorized Officer | | |
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SCHEDULE a TO WARRANT CERTIFICATE
WARRANT TERMS AND CONDITIONs
Terms and Conditions attached to the Warrant Certificate issued by General Fusion Group Ltd. to the Holder and dated [●], 2026.
ARTICLE 1 - INTERPRETATION
1.1 | Definitions. In these Terms and Conditions, unless there is something in the subject matter or context inconsistent therewith: |
(a) | “Accredited Investor” in respect of any Person that is resident in Canada or any international jurisdiction other than the United States of America, means an accredited investor as defined in National Instrument 45-106 Prospectus Exemptions promulgated by the Canadian Securities Administrators, or in respect of any U.S. Person, means an accredited investor as defined in Rule 501(a) of Regulation D under the U.S. Securities Act; |
(b) | “Arms-length” has the meaning set out under the Income Tax Act (Canada); |
(c) | “Assignee” means the then current shareholder of the Company to whom the Company assigns the Offer, or any portion of it, to; |
(d) | “Board” means the Board of Directors of the Company, as constituted from time to time; |
(e) | “Business Day” means any day except a Saturday or Sunday and legal holidays for Canadian chartered banks in Vancouver, British Columbia; |
(f) | “Capital Reorganization” means the Company changing its Share structure by way of: i) reclassifying existing Share classes; or ii) subdividing, redividing or changing its outstanding Shares into a greater number of Shares; or iii) reducing, combining or consolidating its outstanding Shares into a smaller number of Shares; |
(g) | “Company” means General Fusion Group Ltd.; |
(h) | “Encumbrance” shall mean any encumbrance, lien, claim, charge, hypothec, pledge, mortgage, title retention agreement, security interest of any nature, adverse claim, exception, reservation, easement, right of occupation, any matter capable of registration against title, option, right of pre-emption, privilege or any contract to create any of the foregoing; |
(i) | “Government Entity” means any agent corporation, Crown corporation or department as such terms are defined in the Financial Administration Act; |
(j) | “Holder” means initially BDC Capital Inc. (“BDC”), or its nominee or its assignee, or any Person to whom the Warrant has been Transferred in accordance with this Agreement; |
(k) | “Issue Date” means the date the Warrant Certificate was issued; |
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(l) | “Person” means any individual, corporation, undertaking, partnership, trustee, trust or unincorporated association, joint venture, syndicate, sole proprietorship, executor, administrator, or other legal representatives, regulatory body, or agency, government, governmental agency, authority or entity, however designated or constituted; |
(m) | “Plan of Arrangement” means the plan of arrangement under section 288 of the Business Corporations Act (British Columbia) resulting in the consummation of the business combination between Spring Valley Acquisition Corp. III, General Fusion Inc. and 1573562 B.C. Ltd. on July 10, 2026; |
(n) | “Shares” means the Common shares in the capital of the Company, commonly referred to as subordinate voting shares; |
(o) | “Transfer” includes any sale, exchange, assignment, gift, bequest, disposition, mortgage, charge, pledge, encumbrance, grant of a security interest or other arrangement by which possession, legal title or beneficial ownership passes from one Person to another, or to the same Person in a different capacity, whether or not voluntarily and whether or not for value, and any agreement to effect any of the foregoing; |
(p) | “U.S. Person” means a U.S. person as defined in Rule 902(k) of Regulation S under the U.S. Securities Act; |
(q) | “U.S. Securities Exchange Act” means the United States Securities Exchange Act of 1934, as amended; |
(r) | “Warrant” means this share purchase warrant entitling the Holder to acquire the Shares, subject to such adjustments as are provided for in this Warrant Certificate; and |
(s) | “Warrant Certificate” means the certificate to which these Terms and Conditions are attached and all Schedules attached thereto. |
1.2 | Interpretation. |
(a) | Words and phrases defined elsewhere herein or in the Warrant Certificate shall have the particular meanings so ascribed thereto. |
(b) | Words importing the singular number include the plural and vice versa and words importing the masculine gender include the feminine and neuter genders. |
(c) | Any words with initial capitals not otherwise defined herein shall have the meaning ascribed thereto in the Warrant Exercise Subscription Form. |
(d) | The terms “herein”, “hereby” and similar expressions refer to these Terms and Conditions as the same may be amended or modified from time to time; and the expression “Article” and “Section” followed by a number refer to the specified Article or Section of these Terms and Conditions. |
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ARTICLE 2 - EXERCISE OF WARRANTS
2.1 | Warrants Issued in Exchange for Original Warrants. This Warrant Certificate evidences Warrants issued in exchange for warrants to purchase common shares of General Fusion Inc. previously issued by General Fusion Inc. to the Holder on July 9, 2026 (the “Original Warrants”) and in connection with the Plan of Arrangement and the Warrant Transfer Agreement dated July 3, 2026 among General Fusion Inc., the Holder and His Majesty the King in the Right of Canada, as represented by the Ministry of Industry. In addition to these Warrants, and concurrently upon issuance of this Warrant Certificate, in exchange for the Original Warrants, the Holder shall receive warrants to purchase Class A Earnout shares of the capital of the Company (the “Class A Earnout Warrants”), warrants to purchase Class B Earnout shares in the capital of the Company (the “Class B Earnout Warrants”) and warrants to purchase Class C Earnout shares in the capital of the Company (the “Class C Earnout Warrants”, and together with the Class A Earnout Warrants and the Class B Earnout Warrants, the “Earnout Warrants”, and further together with these Warrants, the “Exchanged Warrants”). |
2.2 | Exercise at the Election of Holder. The Holder’s right to subscribe for and purchase Shares under the Warrant may be exercised at any time on or after the Issue Date by delivering the Warrant Certificate along with a duly completed and executed subscription in the form attached hereto as Schedule B (the “Warrant Exercise Subscription Form”) to the Company at the Exercise Location in accordance with the terms of this Warrant Certificate. |
2.3 | Issuance of Shares. The closing of the issuance of the Shares made hereunder as a result of the Holder exercising its Warrant under Section 2.2 shall take place 10:00 am on the third Business Day after the Warrant Certificate, and the completed Warrant Exercise Subscription Form, are delivered to the Company at the Exercise Location. After receipt of the foregoing, the Company shall, by 3:00 p.m. on the fifth Business Day after satisfaction of such delivery requirements, deliver or cause to be delivered to the Holder in book-entry form the Shares and to the extent less the entire Warrant is exercised, the warrant certificate in the same form as the Warrant Certificate in respect of the remainder of the Warrant. |
2.4 | No Fractional Shares. The Company shall not be required to issue fractional Shares or other securities in satisfaction of its obligations hereunder. If any fractional interest in a Share or other security would, except for the provisions of this section, be deliverable upon the exercise of Warrant, the Company shall instead issue the next lesser whole number of Shares or other securities. |
2.5 | Beneficial Ownership Limitations. The exercise of the Warrants shall be subject to the Beneficial Ownership Provisions set forth in Schedule C hereto. |
ARTICLE 3 - COVENANTS OF THE CORPORATION
3.1 | Reservation of Shares. The Company will at all times reserve and keep available a sufficient number of Shares for the purpose of enabling it to satisfy its obligations to issue Shares upon the exercise of the Warrant, and the Company shall take all such corporate action as may be necessary in order that the Company have unissued and reserved in its authorized capital and may validly and legally issue as fully paid and non-assessable all Shares which the Holder is entitled to receive on the full exercise of the Warrant in accordance with the provisions hereof. |
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3.2 | Fully Paid, Validly Issued Shares. The Company warrants that all the Shares issued upon the exercise of the Warrant will be fully paid and non-assessable free from all Encumbrances and duly and validly issued. |
3.3 | Issue in Substitution for Lost Certificate. If the Warrant Certificate becomes mutilated, lost, destroyed or stolen, the Company shall issue and deliver a new Warrant Certificate of like date and tenor as the one mutilated, lost, destroyed or stolen, in exchange for and in place of and upon cancellation of such mutilated, lost, destroyed or stolen Warrant Certificate, at no cost to the Holder, upon the Holder delivering to the Company a statutory declaration of loss and indemnity in the form prescribed by the Company’s constating documents. |
3.4 | Exchange of Certificates. The Holder may exchange a certificate or certificates representing Warrants for one or more new Warrant certificates representing the same aggregate number of Warrants, at no cost to the Holder. |
ARTICLE 4 - MERGER AND SUCCESSORS
4.1 | Company May Consolidate, etc. on Certain Terms. Nothing herein contained shall prevent any amalgamation or merger of the Company with or into any other corporation or corporations, or a conveyance or transfer of all or substantially all the properties and estates of the Company as an entirety to any corporation lawfully entitled to acquire and operate same; provided however that the corporation formed by such amalgamation or merger or which acquires by conveyance or transfer all or substantially all the properties and estates of the Company as an entirety shall be a corporation organized and existing under the laws of Canada or of the United States of America, or any province, state, district or territory thereof, and shall, simultaneously with such amalgamation, merger, conveyance or transfer, assume the due and punctual performance and observance of all the covenants and conditions hereof to be performed or observed by the Company. |
4.2 | Successor Company Substituted. In case the Company, pursuant to Section 4.1 shall be amalgamated or merged with or into any other corporation or corporations, or shall convey or transfer all or substantially all of its properties and estates as an entirety to any other corporation, the successor corporation formed by such consolidation or amalgamation, or into which the Company shall have been amalgamated or merged or which shall have received a conveyance or transfer as aforesaid, shall succeed to and be substituted for the Company hereunder. Such changes in phraseology and form (but not in substance) may be made in the Warrant Certificate and herein as may be appropriate in view of such amalgamation, merger or transfer. |
ARTICLE 5 - ADJUSTMENTS
5.1 | Adjustment of Subscription and Purchase Rights. From and after the Issue Date, the number of Shares covered by and deliverable upon the exercise of the Warrants are subject to adjustment in the following events, any such adjustment will be done in the following manner: |
(a) | if and whenever at any time prior to the exercise of the Warrants, the Company shall undertake Capital Reorganization: in the case where such Capital Reorganization results in the subdividing, redividing or changing its outstanding Shares into a greater number of Shares, or results in the reducing, combining or |
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consolidating its outstanding Shares into a smaller number of Shares, the number of Shares obtainable under each Warrant shall be adjusted immediately after the effective date of such Capital Reorganization, by multiplying the number of Shares theretofore obtainable on the exercise thereof by a fraction of which the numerator shall be the total number of Shares outstanding immediately after such date and the denominator shall be the total number of Shares outstanding immediately prior to such date. Such adjustment shall be made successively whenever any event referred to in this subsection shall occur;
(b) | if and whenever at any time prior to the exercise of the Warrants, there is a reclassification of the Shares or a capital reorganization of the Company (other than a Capital Reorganization) or a consolidation, amalgamation or merger of the Company with or into any other body corporate, trust, partnership or other entity, or a sale or conveyance of the property and assets of the Company as an entirety or substantially as an entirety to any other body corporate, trust, partnership or other entity, any Holder who has not exercised its right of acquisition, as to the effective date of such reclassification, capital reorganization, consolidation, amalgamation, merger, sale or conveyance, upon the exercise of such right thereafter, shall be entitled to receive and shall accept, in lieu of the number of Shares such Holder would otherwise be entitled to acquire, the number of shares or other securities or property of the Company or of the body corporate, trust, partnership or other entity resulting from such merger, amalgamation or consolidation, or to which such sale or conveyance may be made, as the case may be, that such Holder would have been entitled to receive on such reclassification, capital reorganization, consolidation, amalgamation, merger, sale or conveyance, if, on the record date or the effective date thereof, as the case may be, the Holder had been the registered holder of the number of Shares sought to be acquired by it, provided that, if the securities otherwise deliverable to the Holder pursuant to this Section 5.1(b), whether upon exercise, deemed exercise or otherwise in connection with any of the transactions contemplated by this Section 5.1(b), would result in the Holder exceeding any Beneficial Ownership Limitation set forth in Schedule C, then, the Holder shall receive securities, rights or other instruments that are economically equivalent and structured in a manner that permits the Holder to comply with such limitations; |
(c) | if and whenever at any time prior to the exercise of the Warrants the Company shall issue or distribute to all or substantially all the holders of the Shares: |
(i) | securities of the Company, including Shares, rights, options or warrants to acquire Shares of any class or securities exchangeable for or convertible into or exchangeable into any such Shares, or cash, or property or assets and including evidence of its indebtedness; or |
(ii) | any property or other assets, |
then the number of Shares to be issued by the Company under the Warrants shall, at the time of exercise, be appropriately adjusted and the Holder shall receive, in addition to the number of Shares in respect of which the right is then being exercised, the aggregate number of Shares or other securities, cash or property that the Holder would have been entitled to receive as a result of such event if, on the record date thereof, the Holder had been the registered holder of the number of
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Shares to which the Holder was theretofore entitled upon the exercise of the Warrants; and
(d) | the adjustments provided for in this Warrant Certificate in the number of Shares and classes of securities which are to be received on the exercise of Warrants are cumulative. After any adjustment pursuant to this section, the term “Shares” where used in this Warrant Certificate shall be interpreted to mean securities of any class or classes which, as a result of such adjustment and all prior adjustments pursuant to this section, the Holder is entitled to receive upon the exercise of its Warrants, and the number of Shares indicated by any exercise made pursuant to a Warrant shall be interpreted to mean the number of Shares or other property or securities a Holder is entitled to receive, as a result of such adjustment and all prior adjustments pursuant to this section, upon the full exercise of a Warrant. |
5.2 | Determination of Adjustments. The adjustments provided for in this Warrant Certificate are cumulative. The Company shall, promptly after each adjustment made hereunder, provide the Holder with a certificate providing the relevant facts and calculations with respect to such adjustments. If any questions shall at any time arise with respect to any adjustments to be made hereunder, such question shall be conclusively determined by an independent firm of Chartered Accountants who shall have access to all appropriate records, and such determination shall be binding upon the Company and the Holder. |
ARTICLE 6 - transfers
6.1 | Transfer. |
(a) | The Holder may Transfer, in whole or in parts, the Warrants to any other Person with the Board’s prior approval, such approval to not be unreasonably or arbitrarily withheld, delayed or conditioned. The foregoing Paragraph (a) does not apply to any Transfer of Warrants by BDC to another Government Entity. |
(b) | In connection with any Transfer pursuant to Section 6.1(a), the Person to which the Warrants are transferred shall as a condition of such Transfer enter into an agreement by which it agrees to be bound by the provisions of this Warrant Certificate as if it were an original recipient of this Warrant Certificate and to deliver a certificate in the form provided by the Company certifying the Accredited Investor status of such Person. |
6.2 | Surrender of Certificate. A Transfer will only be effective upon surrender of the original Warrant Certificate, for registration of Transfer, duly endorsed, or accompanied by a duly executed written instrument of Transfer in form prescribed by the Company from time to time. |
ARTICLE 7 - REPRESENTATIONS
7.1 | Representations of the Company. The Company represents to the Holder that: |
(a) | this Warrant has been duly authorized and executed by the Company and when delivered will be the valid and binding obligation of the Company enforceable in accordance with its terms; |
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(b) | the Shares to be received upon the exercise of thereof have been duly authorized and reserved for issuance by the Company and when issued in accordance with the terms hereof, will be validly issued, fully paid and non-assessable; |
(c) | the execution and delivery of this Warrant (i) are not, and the issuance of the Shares upon exercise of this Warrant in accordance with the terms hereof will not be, inconsistent with the Company’s Articles or Notice of Articles, (ii) do not and will not contravene any law, governmental rule or regulation, judgment or order applicable to the Company, (iii) do not and will not contravene any provision of, or constitute a default under, any indenture, mortgage, contract or other instrument of which the Company is a party or by which it is bound and (iv) do not and will not require the consent or approval of, the giving of notice to, the registration with or the taking of any action in respect of or by, any federal, provincial or local government authority or agency or other Person. |
ARTICLE 8 - GENERAL
8.1 | No Impairment. The Company will not, by amendment of its articles or through any reorganization, recapitalization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms to be observed or performed hereunder by the Company, but will at all times in good faith assist in the carrying out of all the provisions of this Section 8.1 and in taking of all such action as may be necessary or appropriate in order to protect the rights of the Holder against impairment. |
8.2 | Further Acts. Each of the Company and the Holder shall at the request of the Holder, and at the expense of the Company, execute and deliver any further documents and do all acts and things as the Holder may reasonably require in order to carry out the true intent and meaning of this Warrant Certificate. |
8.3 | Applicable Law. The terms of this Warrant Certificate shall be construed exclusively in accordance with the laws of the Province of British Columbia and the laws of Canada applicable therein. |
8.4 | Waiver and Amendment. Any term or provision of this Warrant Certificate may be waived at any time by the party entitled to the benefits thereof and any term or provision of this Warrant Certificate may be amended or supplemented at any time by agreement of the Holder and the Company, except that any waiver of any term or condition, or any amendment or supplementation of this Warrant Certificate, must be in writing. A waiver of any breach of failure to enforce any of the terms or conditions of this Warrant Certificate shall not, in any way, affect or limit or act as a waiver of the parties' rights hereunder at any time to enforce strict compliance thereafter with any term or condition of this Warrant Certificate. |
8.5 | Enurement. This Warrant Certificate shall enure to the benefit of and be binding upon the Company and the Holder, and their respective successors and permitted assigns. |
8.6 | Time. Time shall be of the essence herein. |
8.7 | Notices. Any notice, request or other document required or permitted to be given or delivered to the Holder or the Company shall be delivered, or shall be sent by certified or |
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registered mail, postage prepaid or shall be sent by facsimile transmission to such Holder or the Company.
8.8 | Entire Agreement. The Exchanged Warrants constitute all of the warrants to purchase shares of the Company issuable in exchange for the Original Warrants and replace and supersede the Original Warrants in its entirety. |
8.9 | Signature and Electronic Copies. This Warrant Certificate may be signed by electronic signature, which shall be deemed to be an original and shall be deemed to have the same legal effect and validity as a certificate bearing an original signature. Notwithstanding anything herein, delivery of an executed copy of this Warrant Certificate by electronic transmission or other means of electronic communication capable of producing a printed copy will be deemed to be an original execution and delivery of this Warrant Certificate. If this Warrant Certificate bears an electronic signature as contemplated above and the Company delivers or causes to be delivered this Warrant Certificate by electronic transmission pursuant to this Section 8.9, then the Company represents to the Holder that the electronically transmitted warrant is the only executed copy to be issued to the Holder by the Company or on behalf of the Company. |
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Schedule B TO WARRANT CERTIFICATE
WARRANT EXERCISE SUBSCRIPTION FORM
(“Exercise Agreement”)
TO: General Fusion Group Ltd. (the “Company”)
The undersigned, being the holder of the attached Warrant Certificate (the “Holder”), hereby subscribes for ____________________ Common shares in the capital of the Company (the “Common Shares”) upon and subject to the terms and conditions set forth in the Warrant Certificate.
The Holder hereby:
1. | delivers to the Company the enclosed Warrant Certificate and irrevocably accepts the terms and conditions of this Exercise Agreement in respect of the Warrant and subject to the terms and conditions of this Exercise Agreement, hereby exercises the Warrant; |
2. | represents and warrants that: (a) the undersigned has full power and authority to exercise the Warrants and has not sold, assigned or transferred or agreed to sell, assign or Transfer any of such Warrant to any other Person; and (b) is the owner of the Warrant represented by the Warrant Certificate; and |
3. | directs the Company or its transfer agent, upon exercise of the Warrant: (a) to issue or cause to be issued the Common Shares to which the undersigned is entitled upon the exercise of the Warrant in the name indicated below and to send certificates evidencing such Common Shares by courier. All questions as to validity, form and eligibility of any surrender of Warrant Certificate hereunder will be reasonably determined by Company and such determination shall be final and binding. |
The Holder on its own behalf and/or on behalf of a beneficial owner of the Warrant (the “Beneficial Holder”) as applicable acknowledges and agrees that:
4. | if it is a company, partnership, unincorporated association or other entity, it has the legal capacity to enter into and be bound by this Exercise Agreement and further certifies that all necessary approvals of directors, shareholders, partners or otherwise have been given and obtained; |
5. | if it is an individual, it is of the full age of majority and is legally competent to execute this Exercise Agreement and take all action pursuant hereto; and |
6. | this Exercise Agreement has been duly and validly authorized, executed and delivered by and constitutes a legal, valid, binding and enforceable obligation of the Holder; and |
7. | where it is acting as agent for a Beneficial Holder, it is duly authorized to execute and deliver this Exercise Agreement and all other necessary documentation in connection with such subscription on behalf of such Beneficial Holder and this Exercise Agreement has been duly authorized, executed and delivered by or on behalf of, and constitutes a legal, valid, binding and enforceable agreement of, such Beneficial Holder. |
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| BOX A | | |
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| ISSUE COMMON SHARES IN THE NAME OF (please print or type): | ||
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| (Name) | | |
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| (Street Address and Number) | | |
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| (City and Province) | | |
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| (Country and Postal Code) | | |
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| (Telephone - Business) | | |
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| (Email Address) | | |
BOX B | ||
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| SEND COMMON SHARES TO (please print or type): | |
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| (Name) | |
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| (Contact Person) | |
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| (Account reference, if applicable) | |
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| BOX C | | ||
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| IN THE CASE OF A PARTIAL EXERCISE NEW CERTIFICATE(S) FOR WARRANTS ARE TO BE ISSUED AS ONE CERTIFICATE OR: | | ||
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| ◻In the following denominations (please print or type): | | ||
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| | (Name) | | |
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| | (Street Address and Number) | | |
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| | (City and Province) | | |
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| | (Country and Postal Code) | | |
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| | (Telephone - Business) | | |
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| | (Email Address) | | |
| HOLDER SIGNATURE(S) | ||||
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| | | Dated: _________________, 202___ | ||
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| Name of Holder: | | Signature of Holder Authorized Representative | | |
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| Authorized Signature | | Signature of Holder Authorized Representative | | |
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| Address (please print or type) | | Telephone Number (during business hours) | | |
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schedule c to warrant certificate
BENEFICIAL OWNERSHIP LIMITATIONS
Beneficial Ownership Limitation.
(a) | The Company shall not effect any exercise of the Warrants or partial exercise of the Warrants under this Warrant Certificate, and the Holder shall not have the right to exercise any portion of the Warrants under this Warrant Certificate, pursuant to Article 2 or otherwise, to the extent that after giving effect to exercise as set forth on the Warrant Exercise Subscription Form attached to the Warrant Certificate (the “Exercise Agreement”), the Holder (together with the Holder’s Affiliates, and any other persons acting as a group together with the Holder or any of the Holder’s Affiliates (such persons, “Attribution Parties”)), would beneficially own in excess of the Beneficial Ownership Limitation (as defined below). For purposes of the foregoing sentence, the number of equity securities of a class beneficially owned by the Holder and its Affiliates and Attribution Parties shall include the number of equity securities of that class issuable upon exercise of the Warrants under this Warrant Certificate with respect to which such determination is being made, but shall exclude the number of equity securities of that class which would be issuable upon (i) exercise of the remaining, non-exercised portion of the Warrants under this Warrant Certificate beneficially owned by the Holder or any of its Affiliates or Attribution Parties and (ii) exercise or conversion of the unexercised or nonconverted portion of any other securities of the Company (including, without limitation, any other equivalents to the equity securities of that class) subject to a limitation on conversion or exercise analogous to the limitation contained herein beneficially owned by the Holder or any of its Affiliates or Attribution Parties. |
(b) | Except as set forth in the preceding paragraph (a), for purposes of this Schedule C, beneficial ownership shall be calculated in accordance with Section 13(d) of the U.S. Securities Exchange Act and the rules and regulations promulgated thereunder, it being acknowledged by the Holder that the Company is not representing to the Holder that such calculation is in compliance with Section 13(d) of the U.S. Securities Exchange Act and the Holder is solely responsible for any schedules required to be filed in accordance therewith. |
(c) | To the extent that the limitation contained in this Schedule C applies, the determination of whether and the extent the Warrants under this Warrant Certificate are exercisable (in relation to other securities owned by the Holder together with any Affiliates and Attribution Parties) shall be in the sole discretion of the Holder, and the submission of an Exercise Agreement shall be deemed to be the Holder’s determination of whether and the extent to which the Warrants under this Warrant Certificate are exercisable (in relation to other securities owned by the Holder together with any Affiliates and Attribution Parties), in each case subject to the Beneficial Ownership Limitation, and the Company shall have no obligation to verify or confirm the accuracy of such determination (including any determination as to group status pursuant to the next sentence). Each Exercise Agreement for a Warrant or a portion thereof shall include a written certification made in good faith by the Holder (on behalf of itself and its Attribution Parties and Joint Actors, as applicable) certifying that the proposed exercise complies with the applicable ownership limitations set forth herein. The Company may rely on such certification and shall have no obligation to verify the accuracy thereof, notably with respect to whether or not certain parties are Attribution Parties or Joint Actors of the Holder. In providing its certification, a Holder may rely on the information on outstanding securities as reflected in (A) the Company’s most recent periodic or annual filed |
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reports, (B) a more recent public announcement by the Company or (C) a more recent written notice by the Company or the transfer agent setting forth information on the outstanding securities. Upon the written or oral request of a Holder, the Company shall within one trading day confirm orally and in writing to the Holder the relevant information on outstanding securities of the Company. For clarity, (A) a determination as to any group status as contemplated above shall be determined in accordance with Section 13(d) of the U.S. Securities Exchange Act and the rules and regulations promulgated thereunder; and (B) the number of outstanding equity securities of a class shall be determined after giving effect to the conversion or exercise of securities of the Company, including the Warrants under this Warrant Certificate (to the extent converted or exercised, as permitted herein), by the Holder or its Affiliates or Attribution Parties since the date as of which such number of outstanding equity securities of that class was reported.
(d) | The “Beneficial Ownership Limitation” shall be 4.99% of the number of equity securities of that class outstanding immediately after giving effect to the issuance of equity securities of that class issuable upon exercise of the Warrants under this Warrant Certificate. The Holder, upon notice to the Company, may increase or decrease the Beneficial Ownership Limitation provisions of this Schedule C, provided that in no event shall the Beneficial Ownership Limitation exceed 9.99% of the number of the equity securities of a class outstanding immediately after giving effect to the issuance of equity securities of that class upon exercise of the Warrants under this Warrant Certificate held by the Holder and the provisions of this Schedule C shall continue to apply. Any increase or decrease in the Beneficial Ownership Limitation will not be effective until the 61st day after such notice is delivered to the Company. The provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Schedule C to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the intended Beneficial Ownership Limitation herein contained or to make changes or supplements necessary or desirable to properly give effect to such limitation. The limitations contained in this Schedule C shall apply to a successor holder of this Warrant Certificate. |
For purposes of this Schedule C, “Affiliate” shall have the meaning ascribed to such term under the U.S. Securities Exchange Act, and the rules promulgated thereunder except that, solely for purposes of paragraph (e), “Affiliate” shall have the meaning ascribed to such term under applicable Canadian securities regulation.
(e) | Further, the Company shall not honour or permit any discretionary or mandatory exercise of any securities held by the Holder or any Affiliates or persons acting jointly or in concert with such persons (as determined in accordance with Canadian securities laws, together, the “Joint Actors”) into any equity securities of any class of the Company’s capital to the extent that after giving effect to such exercise, the Holder (together with any Joint Actors) would beneficially own, or have control or direction over, (i) in excess of 19.99% of the voting rights attached to all of the Company's voting securities, or (ii) in excess of 9.99% of the outstanding securities of that class, in each case immediately after giving effect to such exercise on a partially diluted basis in accordance with Canadian securities laws. For purposes of the foregoing calculation, the securities beneficially owned, or over which control or direction is exercised, by the Holder and its Joint Actors shall include the equity securities issuable upon the proposed exercise of the portion of this Warrant Certificate or other Warrants then being exercised, and any other securities of the applicable class that the Holder or any Joint Actor has the right or obligation to acquire within sixty (60) days, but shall exclude any equity securities issuable upon exercise of the remaining unexercised portion of this Warrant Certificate or any other Warrants to the extent that such remaining portion is, by virtue of this paragraph, not exercisable within sixty (60) days because its exercise would cause the Holder, together with its Joint Actors, to exceed the applicable ownership limitation set forth above. |
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For greater certainty, nothing in this paragraph shall prohibit the partial exercise of this Warrant Certificate or any other Warrants to the extent that, after giving effect to such partial exercise, the Holder, together with its Joint Actors, would not exceed the applicable ownership limitations set forth above. Any portion of this Warrant Certificate or any other Warrants that may not be exercised as a result of this paragraph shall not be deemed to be exercisable by the Holder within sixty (60) days for purposes of calculating the Holder’s beneficial ownership, or control or direction, under Canadian securities laws.
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Exhibit 4.16
THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFER SET FORTH IN A LOCK-UP LETTER AGREEMENT, EFFECTIVE AS OF JULY 10, 2026, AS AMENDED. A COPY OF SUCH LOCK-UP AGREEMENT WILL BE FURNISHED WITHOUT CHARGE BY THE COMPANY TO THE HOLDER HEREOF UPON WRITTEN REQUEST.
UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF MUST NOT TRADE THE SECURITY BEFORE THE DATE THE COMPANY BECAME A REPORTING ISSUER IN ANY PROVINCE OR TERRITORY OF CANADA.
THE SECURITIES ISSUABLE UPON EXERCISE HEREOF ARE SUBJECT TO RESTRICTIONS ON TRANSFER SET FORTH IN THE ARTICLES OF THE COMPANY. A COPY OF SUCH ARTICLES WILL BE FURNISHED WITHOUT CHARGE BY THE COMPANY TO THE HOLDER THEREOF UPON WRITTEN REQUEST.
GENERAL FUSION GROUP LTD.
WARRANT CERTIFICATE
(Warrants to Purchase Class A Earnout Shares)
Warrant Certificate No. 026-EA-[●]
THIS IS TO CERTIFY THAT, for value received, BDC Capital Inc. (the “Holder”) is entitled to subscribe for and purchase from GENERAL FUSION GROUP LTD. (the “Company”) [•] Class A Earnout Shares at a price per share equal to the Exercise Price upon and subject to the further terms, conditions and adjustments set forth in the Terms and Conditions attached hereto as Schedule A and incorporated by reference and deemed to be part hereof.
The Warrants may be exercised at the office of Company at 6020 Russ Baker Way, Richmond, BC V7B 1B4, Canada, Attention: Rob Crystal, Senior Vice President, Finance, or such other address as the Company may from time to time in writing direct (the “Exercise Location”).
Except as otherwise indicated, all capitalized terms used herein have the definitions set out in the Terms and Conditions.
This Warrant is exercisable after the Issue Date.
IN WITNESS WHEREOF the Company has caused this Warrant to be executed by its duly authorized officer.
DATED: September [●], 2026.
GENERAL FUSION GROUP LTD.
Per: | | | |
| Name: | | |
| Title: | Authorized Officer | |
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SCHEDULE a TO WARRANT CERTIFICATE
WARRANT TERMS AND CONDITIONs
Terms and Conditions attached to the Warrant Certificate issued by General Fusion Group Ltd. to the Holder and dated [●], 2026.
ARTICLE 1 - INTERPRETATION
1.1 | Definitions. In these Terms and Conditions, unless there is something in the subject matter or context inconsistent therewith: |
(a) | “Accredited Investor” in respect of any Person that is resident in Canada or any international jurisdiction other than the United States of America, means an accredited investor as defined in National Instrument 45-106 Prospectus Exemptions promulgated by the Canadian Securities Administrators, or in respect of any U.S. Person, means an accredited investor as defined in Rule 501(a) of Regulation D under the U.S. Securities Act; |
(b) | “Arms-length” has the meaning set out under the Income Tax Act (Canada); |
(c) | “Assignee” means the then current shareholder of the Company to whom the Company assigns the Offer, or any portion of it, to; |
(d) | “Board” means the Board of Directors of the Company, as constituted from time to time; |
(e) | “Business Day” means any day except a Saturday or Sunday and legal holidays for Canadian chartered banks in Vancouver, British Columbia; |
(f) | “Capital Reorganization” means the Company changing its Class A Earnout Share structure by way of: i) reclassifying existing Class A Earnout Share classes; or ii) subdividing, redividing or changing its outstanding Class A Earnout Shares into a greater number of Class A Earnout Shares; or iii) reducing, combining or consolidating its outstanding Class A Earnout Shares into a smaller number of Class A Earnout Shares; |
(g) | “Class A Earnout Shares” means the Class A Earnout shares in the capital of the Company; |
(h) | “Common Shares” means Common shares in the capital of the Company (commonly referred to as subordinate voting shares); |
(i) | “Company” means General Fusion Group Ltd.; |
(j) | “Encumbrance” shall mean any encumbrance, lien, claim, charge, hypothec, pledge, mortgage, title retention agreement, security interest of any nature, adverse claim, exception, reservation, easement, right of occupation, any matter capable of registration against title, option, right of pre-emption, privilege or any contract to create any of the foregoing; |
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(k) | “Exercise Price” means US$0.01 per Class A Earnout Share; |
(l) | “Government Entity” means any agent corporation, Crown corporation or department as such terms are defined in the Financial Administration Act; |
(m) | “Holder” means initially BDC Capital Inc. (“BDC”), or its nominee or its assignee, or any Person to whom the Warrant has been Transferred in accordance with this Agreement; |
(n) | “Issue Date” means the date the Warrant Certificate was issued; |
(o) | “Person” means any individual, corporation, undertaking, partnership, trustee, trust or unincorporated association, joint venture, syndicate, sole proprietorship, executor, administrator, or other legal representatives, regulatory body, or agency, government, governmental agency, authority or entity, however designated or constituted; |
(p) | “Plan of Arrangement” means the plan of arrangement under section 288 of the Business Corporations Act (British Columbia) resulting in the consummation of the business combination between Spring Valley Acquisition Corp. III, General Fusion Inc. and 1573562 B.C. Ltd. on July 10, 2026; |
(q) | “Subject Shares” means the Class A Earnout Shares issuable upon exercise of this Warrant or, following a conversion of the Class A Earnout Shares contemplated by Section 2.6, the Common Shares issuable upon exercise of this Warrant. |
(r) | “Transfer” includes any sale, exchange, assignment, gift, bequest, disposition, mortgage, charge, pledge, encumbrance, grant of a security interest or other arrangement by which possession, legal title or beneficial ownership passes from one Person to another, or to the same Person in a different capacity, whether or not voluntarily and whether or not for value, and any agreement to effect any of the foregoing; |
(s) | “U.S. Person” means a U.S. person as defined in Rule 902(k) of Regulation S under the U.S. Securities Act; |
(t) | “U.S. Securities Exchange Act” means the United States Securities Exchange Act of 1934, as amended; |
(u) | “Warrant” means this share purchase warrant entitling the Holder to acquire the Class A Earnout Shares at the Exercise Price per Class A Earnout Share, subject to such adjustments as are provided for in this Warrant Certificate; and |
(v) | “Warrant Certificate” means the certificate to which these Terms and Conditions are attached and all Schedules attached thereto. |
1.2 | Interpretation. |
(a) | Words and phrases defined elsewhere herein or in the Warrant Certificate shall have the particular meanings so ascribed thereto. |
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(b) | Words importing the singular number include the plural and vice versa and words importing the masculine gender include the feminine and neuter genders. |
(c) | Any words with initial capitals not otherwise defined herein shall have the meaning ascribed thereto in the Warrant Exercise Subscription Form. |
(d) | The terms “herein”, “hereby” and similar expressions refer to these Terms and Conditions as the same may be amended or modified from time to time; and the expression “Article” and “Section” followed by a number refer to the specified Article or Section of these Terms and Conditions. |
ARTICLE 2 - EXERCISE OF WARRANTS
2.1 | Warrants Issued in Exchange for Original Warrants. This Warrant Certificate evidences Warrants issued in exchange for warrants to purchase common shares of General Fusion Inc. previously issued by General Fusion Inc. to the Holder on July 9, 2026 (the “Original Warrants”) in connection with the Plan of Arrangement and the Warrant Transfer Agreement dated July 3, 2026 among General Fusion Inc., the Holder and His Majesty the King in the Right of Canada, as represented by the Ministry of Industry. In addition to these Warrants, and concurrently upon issuance of this Warrant Certificate, in exchange for the Original Warrants, the Holder shall receive warrants to purchase Common Shares (the “Common Warrants”), warrants to purchase Class B Earnout shares in the capital of the Company, and warrants to purchase Class C Earnout shares in the capital of the Company (together with these Warrants and Common Warrants, the “Exchanged Warrants”). |
2.2 | Exercise at the Election of Holder. The Holder’s right to subscribe for and purchase Subject Shares under the Warrant may be exercised at any time on or after the Issue Date by delivering the Warrant Certificate along with a duly completed and executed subscription in the form attached hereto as Schedule B (the “Warrant Exercise Subscription Form”) to the Company at the Exercise Location in accordance with the terms of this Warrant Certificate. |
2.3 | Issuance of Shares. The closing of the issuance of the Subject Shares made hereunder as a result of the Holder exercising its Warrant under Section 2.2 shall take place 10:00 am on the third Business Day after the Warrant Certificate, the completed Warrant Exercise Subscription Form and payment of the applicable Exercise Price are delivered to the Company at the Exercise Location. After receipt of the foregoing, the Company shall, by 3:00 p.m. on the fifth Business Day after satisfaction of such delivery requirements, deliver or cause to be delivered to the Holder in book-entry form the Subject Shares and to the extent less the entire Warrant is exercised, the warrant certificate in the same form as the Warrant Certificate in respect of the remainder of the Warrant. |
2.4 | No Fractional Shares. The Company shall not be required to issue fractional Subject Shares or other securities in satisfaction of its obligations hereunder. If any fractional interest in a Subject Share or other security would, except for the provisions of this section, be deliverable upon the exercise of Warrant, the Company shall instead issue the next lesser whole number of Subject Shares or other securities. |
2.5 | Beneficial Ownership Limitations. The exercise of the Warrants shall be subject to the Beneficial Ownership Provisions set forth in Schedule C hereto. |
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2.6 | Earnout Conversion Mechanics. |
(a) | Notwithstanding anything else in this Warrant Certificate, to the extent that any Class A Earnout Share underlying the Warrant converts into Common Shares pursuant to the terms of the Company’s articles prior to July 9, 2031, the Warrant shall thereafter entitle the Holder to acquire such number of Common Shares into which such underlying Class A Earnout Share converted, upon payment of the applicable Exercise Price otherwise applicable to such Warrant. |
(b) | To the extent that the Class A Earnout Shares underlying the Warrant do not convert into Common Shares pursuant to the terms of the Company’s articles prior to July 9, 2031, the Warrant shall automatically terminate and cease to be exercisable on July 9, 2031. |
ARTICLE 3 - COVENANTS OF THE CORPORATION
3.1 | Reservation of Shares. The Company will at all times reserve and keep available a sufficient number of Subject Shares for the purpose of enabling it to satisfy its obligations to issue Subject Shares upon the exercise of the Warrant, and the Company shall take all such corporate action as may be necessary in order that the Company have unissued and reserved in its authorized capital and may validly and legally issue as fully paid and non-assessable all Subject Shares which the Holder is entitled to receive on the full exercise of the Warrant in accordance with the provisions hereof. |
3.2 | Fully Paid, Validly Issued Shares. The Company warrants that all the Subject Shares issued upon the exercise of the Warrant will be fully paid and non-assessable free from all Encumbrances and duly and validly issued. |
3.3 | Issue in Substitution for Lost Certificate. If the Warrant Certificate becomes mutilated, lost, destroyed or stolen, the Company shall issue and deliver a new Warrant Certificate of like date and tenor as the one mutilated, lost, destroyed or stolen, in exchange for and in place of and upon cancellation of such mutilated, lost, destroyed or stolen Warrant Certificate, at no cost to the Holder, upon the Holder delivering to the Company a statutory declaration of loss and indemnity in the form prescribed by the Company’s constating documents. |
3.4 | Exchange of Certificates. The Holder may exchange a certificate or certificates representing Warrants for one or more new Warrant certificates representing the same aggregate number of Warrants, at no cost to the Holder. |
ARTICLE 4 - MERGER AND SUCCESSORS
4.1 | Company May Consolidate, etc. on Certain Terms. Nothing herein contained shall prevent any amalgamation or merger of the Company with or into any other corporation or corporations, or a conveyance or transfer of all or substantially all the properties and estates of the Company as an entirety to any corporation lawfully entitled to acquire and operate same; provided however that the corporation formed by such amalgamation or merger or which acquires by conveyance or transfer all or substantially all the properties and estates of the Company as an entirety shall be a corporation organized and existing under the laws of Canada or of the United States of America, or any province, state, district or territory thereof, and shall, simultaneously with such amalgamation, merger, conveyance or |
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transfer, assume the due and punctual performance and observance of all the covenants and conditions hereof to be performed or observed by the Company.
4.2 | Successor Company Substituted. In case the Company, pursuant to Section 4.1 shall be amalgamated or merged with or into any other corporation or corporations, or shall convey or transfer all or substantially all of its properties and estates as an entirety to any other corporation, the successor corporation formed by such consolidation or amalgamation, or into which the Company shall have been amalgamated or merged or which shall have received a conveyance or transfer as aforesaid, shall succeed to and be substituted for the Company hereunder. Such changes in phraseology and form (but not in substance) may be made in the Warrant Certificate and herein as may be appropriate in view of such amalgamation, merger or transfer. |
ARTICLE 5 - ADJUSTMENTS
5.1 | Adjustment of Subscription and Purchase Rights. From and after the Issue Date, the number of Class A Earnout Shares covered by and deliverable upon the exercise of the Warrants are subject to adjustment in the following events, any such adjustment will be done in the following manner: |
(a) | if and whenever at any time prior to the exercise of the Warrants, the Company shall undertake Capital Reorganization: in the case where such Capital Reorganization results in the subdividing, redividing or changing its outstanding Class A Earnout Shares into a greater number of Class A Earnout Shares, or results in the reducing, combining or consolidating its outstanding Class A Earnout Shares into a smaller number of Class A Earnout Shares, the number of Class A Earnout Shares obtainable under each Warrant shall be adjusted immediately after the effective date of such Capital Reorganization, by multiplying the number of Class A Earnout Shares theretofore obtainable on the exercise thereof by a fraction of which the numerator shall be the total number of Class A Earnout Shares outstanding immediately after such date and the denominator shall be the total number of Class A Earnout Shares outstanding immediately prior to such date. Such adjustment shall be made successively whenever any event referred to in this subsection shall occur; |
(b) | if and whenever at any time prior to the exercise of the Warrants, there is a reclassification of the Class A Earnout Shares or a capital reorganization of the Company (other than a Capital Reorganization) or a consolidation, amalgamation or merger of the Company with or into any other body corporate, trust, partnership or other entity, or a sale or conveyance of the property and assets of the Company as an entirety or substantially as an entirety to any other body corporate, trust, partnership or other entity, any Holder who has not exercised its right of acquisition, as to the effective date of such reclassification, capital reorganization, consolidation, amalgamation, merger, sale or conveyance, upon the exercise of such right thereafter, shall be entitled to receive and shall accept, in lieu of the number of Class A Earnout Shares such Holder would otherwise be entitled to acquire, the number of shares or other securities or property of the Company or of the body corporate, trust, partnership or other entity resulting from such merger, amalgamation or consolidation, or to which such sale or conveyance may be made, as the case may be, that such Holder would have been entitled to receive on such reclassification, capital reorganization, consolidation, amalgamation, merger, sale |
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or conveyance, if, on the record date or the effective date thereof, as the case may be, the Holder had been the registered holder of the number of Class A Earnout Shares sought to be acquired by it, provided that, if the securities otherwise deliverable to the Holder pursuant to this Section 5.1(b), whether upon exercise, deemed exercise or otherwise in connection with any of the transactions contemplated by this Section 5.1(b), would result in the Holder exceeding any Beneficial Ownership Limitation set forth in Schedule C, then, the Holder shall receive securities, rights or other instruments that are economically equivalent and structured in a manner that permits the Holder to comply with such limitations;
(c) | if and whenever at any time prior to the exercise of the Warrants the Company shall issue or distribute to all or substantially all the holders of the Class A Earnout Shares: |
(i) | securities of the Company, including Class A Earnout Shares, rights, options or warrants to acquire Class A Earnout Shares of any class or securities exchangeable for or convertible into or exchangeable into any such Class A Earnout Shares, or cash, or property or assets and including evidence of its indebtedness; or |
(ii) | any property or other assets, |
then the number of Class A Earnout Shares to be issued by the Company under the Warrants shall, at the time of exercise, be appropriately adjusted and the Holder shall receive, in addition to the number of Class A Earnout Shares in respect of which the right is then being exercised, the aggregate number of Class A Earnout Shares or other securities, cash or property that the Holder would have been entitled to receive as a result of such event if, on the record date thereof, the Holder had been the registered holder of the number of Class A Earnout Shares to which the Holder was theretofore entitled upon the exercise of the Warrants; and
(d) | the adjustments provided for in this Warrant Certificate in the number of Shares and classes of securities which are to be received on the exercise of Warrants are cumulative. After any adjustment pursuant to this section, the term “Class A Earnout Shares” where used in this Warrant Certificate shall be interpreted to mean securities of any class or classes which, as a result of such adjustment and all prior adjustments pursuant to this section, the Holder is entitled to receive upon the exercise of its Warrants, and the number of Class A Earnout Shares indicated by any exercise made pursuant to a Warrant shall be interpreted to mean the number of Class A Earnout Shares or other property or securities a Holder is entitled to receive, as a result of such adjustment and all prior adjustments pursuant to this section, upon the full exercise of a Warrant. |
5.2 | Determination of Adjustments. The adjustments provided for in this Warrant Certificate are cumulative. The Company shall, promptly after each adjustment made hereunder, provide the Holder with a certificate providing the relevant facts and calculations with respect to such adjustments. If any questions shall at any time arise with respect to any adjustments to be made hereunder, such question shall be conclusively determined by an independent firm of Chartered Accountants who shall have access to all appropriate records, and such determination shall be binding upon the Company and the Holder. |
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5.3 | Adjustments Post-Earnout Conversion. Following any conversion contemplated by Section 2.6, the adjustment provisions of this Article 5 shall apply, mutatis mutandis, to the Common Shares then issuable upon exercise of the Warrants as though all references in this Article 5 to ‘Class A Earnout Shares’ were references to such Common Shares. |
ARTICLE 6 - transfers
6.1 | Transfer. |
(a) | The Holder may Transfer, in whole or in parts, the Warrants to any other Person with the Board’s prior approval, such approval to not be unreasonably or arbitrarily withheld, delayed or conditioned. The foregoing Paragraph (a) does not apply to any Transfer of Warrants by BDC to another Government Entity. |
(b) | In connection with any Transfer pursuant to Section 6.1(a), the Person to which the Warrants are transferred shall as a condition of such Transfer enter into an agreement by which it agrees to be bound by the provisions of this Warrant Certificate as if it were an original recipient of this Warrant Certificate and to deliver a certificate in the form provided by the Company certifying the Accredited Investor status of such Person. |
6.2 | Surrender of Certificate. A Transfer will only be effective upon surrender of the original Warrant Certificate, for registration of Transfer, duly endorsed, or accompanied by a duly executed written instrument of Transfer in form prescribed by the Company from time to time. |
ARTICLE 7 - REPRESENTATIONS
7.1 | Representations of the Company. The Company represents to the Holder that: |
(a) | this Warrant has been duly authorized and executed by the Company and when delivered will be the valid and binding obligation of the Company enforceable in accordance with its terms; |
(b) | the Subject Shares to be received upon the exercise of thereof have been duly authorized and reserved for issuance by the Company and when issued in accordance with the terms hereof, will be validly issued, fully paid and non-assessable; |
(c) | the execution and delivery of this Warrant (i) are not, and the issuance of the Subject Shares upon exercise of this Warrant in accordance with the terms hereof will not be, inconsistent with the Company’s articles or notice of articles, (ii) do not and will not contravene any law, governmental rule or regulation, judgment or order applicable to the Company, (iii) do not and will not contravene any provision of, or constitute a default under, any indenture, mortgage, contract or other instrument of which the Company is a party or by which it is bound and (iv) do not and will not require the consent or approval of, the giving of notice to, the registration with or the taking of any action in respect of or by, any federal, provincial or local government authority or agency or other Person. |
ARTICLE 8 - GENERAL
8.1 | No Impairment. The Company will not, by amendment of its articles or through any reorganization, recapitalization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms to be observed or performed hereunder by the Company, |
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but will at all times in good faith assist in the carrying out of all the provisions of this Section 8.1 and in taking of all such action as may be necessary or appropriate in order to protect the rights of the Holder against impairment.
8.2 | Further Acts. Each of the Company and the Holder shall at the request of the Holder, and at the expense of the Company, execute and deliver any further documents and do all acts and things as the Holder may reasonably require in order to carry out the true intent and meaning of this Warrant Certificate. |
8.3 | Applicable Law. The terms of this Warrant Certificate shall be construed exclusively in accordance with the laws of the Province of British Columbia and the laws of Canada applicable therein. |
8.4 | Waiver and Amendment. Any term or provision of this Warrant Certificate may be waived at any time by the party entitled to the benefits thereof and any term or provision of this Warrant Certificate may be amended or supplemented at any time by agreement of the Holder and the Company, except that any waiver of any term or condition, or any amendment or supplementation of this Warrant Certificate, must be in writing. A waiver of any breach of failure to enforce any of the terms or conditions of this Warrant Certificate shall not, in any way, affect or limit or act as a waiver of the parties' rights hereunder at any time to enforce strict compliance thereafter with any term or condition of this Warrant Certificate. |
8.5 | Enurement. This Warrant Certificate shall enure to the benefit of and be binding upon the Company and the Holder, and their respective successors and permitted assigns. |
8.6 | Time. Time shall be of the essence herein. |
8.7 | Notices. Any notice, request or other document required or permitted to be given or delivered to the Holder or the Company shall be delivered, or shall be sent by certified or registered mail, postage prepaid or shall be sent by facsimile transmission to such Holder or the Company. |
8.8 | Entire Agreement. The Exchanged Warrants constitute all of the warrants to purchase shares of the Company issuable in exchange for the Original Warrants and replace and supersede the Original Warrants in its entirety. |
8.9 | Signature and Electronic Copies. This Warrant Certificate may be signed by electronic signature, which shall be deemed to be an original and shall be deemed to have the same legal effect and validity as a certificate bearing an original signature. Notwithstanding anything herein, delivery of an executed copy of this Warrant Certificate by electronic transmission or other means of electronic communication capable of producing a printed copy will be deemed to be an original execution and delivery of this Warrant Certificate. If this Warrant Certificate bears an electronic signature as contemplated above and the Company delivers or causes to be delivered this Warrant Certificate by electronic transmission pursuant to this Section 8.9, then the Company represents to the Holder that the electronically transmitted warrant is the only executed copy to be issued to the Holder by the Company or on behalf of the Company. |
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Schedule B TO WARRANT CERTIFICATE
WARRANT EXERCISE SUBSCRIPTION FORM
(“Exercise Agreement”)
TO: General Fusion Group Ltd. (the “Company”)
The undersigned, being the holder of the attached Warrant Certificate (the “Holder”), hereby subscribes for ____________________ Class A Earnout shares or the corresponding number of Common shares calculated in accordance with Section 2.6 of the attached Warrant Certificate, in each case in the capital of the Company (the “Class A Earnout Shares”) upon and subject to the terms and conditions set forth in the Warrant Certificate and tenders payment of the aggregate Exercise Price (US$0.01) for such Class A Earnout share (or such corresponding number of Common shares) as follows:
☐ | certified cheque, bank draft or solicitors trust cheque in the amount of US$ payable to order of the Warrant Administrator, for the Company, enclosed herewith; |
☐ | Wire transfer of immediately available funds to the Warrant Administrator’s account, for the Company; or |
☐ | Other [Describe] |
Payment, if any, shall be made in accordance with Section 2.3 of Schedule “A” to the Warrant Certificate.
The Holder hereby:
1. | delivers to the Company the enclosed Warrant Certificate and irrevocably accepts the terms and conditions of this Exercise Agreement in respect of the Warrant and subject to the terms and conditions of this Exercise Agreement, hereby exercises the Warrant; |
2. | represents and warrants that: (a) the undersigned has full power and authority to exercise the Warrants and has not sold, assigned or transferred or agreed to sell, assign or Transfer any of such Warrant to any other Person; and (b) is the owner of the Warrant represented by the Warrant Certificate; and |
3. | directs the Company or its transfer agent, upon exercise of the Warrant: (a) to issue or cause to be issued the Subject Shares to which the undersigned is entitled upon the exercise of the Warrant in the name indicated below and to send certificates evidencing such Subject Shares by courier. All questions as to validity, form and eligibility of any surrender of Warrant Certificate hereunder will be reasonably determined by Company and such determination shall be final and binding. |
The Holder on its own behalf and/or on behalf of a beneficial owner of the Warrant (the “Beneficial Holder”) as applicable acknowledges and agrees that:
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4. | if it is a company, partnership, unincorporated association or other entity, it has the legal capacity to enter into and be bound by this Exercise Agreement and further certifies that all necessary approvals of directors, shareholders, partners or otherwise have been given and obtained; |
5. | if it is an individual, it is of the full age of majority and is legally competent to execute this Exercise Agreement and take all action pursuant hereto; and |
6. | this Exercise Agreement has been duly and validly authorized, executed and delivered by and constitutes a legal, valid, binding and enforceable obligation of the Holder; and |
7. | where it is acting as agent for a Beneficial Holder, it is duly authorized to execute and deliver this Exercise Agreement and all other necessary documentation in connection with such subscription on behalf of such Beneficial Holder and this Exercise Agreement has been duly authorized, executed and delivered by or on behalf of, and constitutes a legal, valid, binding and enforceable agreement of, such Beneficial Holder. |
| BOX A | | |
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| ISSUE SUBJECT SHARES IN THE NAME OF (please print or type): | ||
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| (Name) | | |
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| (Street Address and Number) | | |
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| (City and Province) | | |
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| (Country and Postal Code) | | |
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| (Telephone - Business) | | |
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| (Email Address) | | |
| BOX B | |
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| SEND SUBJECT SHARES TO (please print or type): | |
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| (Name) | |
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| (Contact Person) | |
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| (Account reference, if applicable) | |
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| (Address) | |
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| (Telephone - Business) | |
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| (Email Address) | |
| BOX C | | ||
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| IN THE CASE OF A PARTIAL EXERCISE NEW CERTIFICATE(S) FOR WARRANTS ARE TO BE ISSUED AS ONE CERTIFICATE OR: | | ||
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| ☐In the following denominations (please print or type): | | ||
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| | (Name) | | |
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| | (Street Address and Number) | | |
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| | (City and Province) | | |
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| | (Country and Postal Code) | | |
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| | (Telephone - Business) | | |
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| | (Email Address) | | |
| HOLDER SIGNATURE(S) | ||||
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| | | Dated: , 202 | ||
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| | | | |
| Name of Holder: | | Signature of Holder Authorized Representative | |
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| Authorized Signature | | Signature of Holder Authorized Representative | |
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| Address (please print or type) | | Telephone Number (during business hours) | |
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schedule c to warrant certificate
BENEFICIAL OWNERSHIP LIMITATIONS
Beneficial Ownership Limitation.
(a) | The Company shall not effect any exercise of the Warrants or partial exercise of the Warrants under this Warrant Certificate, and the Holder shall not have the right to exercise any portion of the Warrants under this Warrant Certificate, pursuant to Article 2 or otherwise, to the extent that after giving effect to exercise as set forth on the Warrant Exercise Subscription Form attached to the Warrant Certificate (the “Exercise Agreement”), the Holder (together with the Holder’s Affiliates, and any other persons acting as a group together with the Holder or any of the Holder’s Affiliates (such persons, “Attribution Parties”)), would beneficially own in excess of the Beneficial Ownership Limitation (as defined below). For purposes of the foregoing sentence, the number of equity securities of a class beneficially owned by the Holder and its Affiliates and Attribution Parties shall include the number of equity securities of that class issuable upon conversion of the Class A Earnout Shares issuable upon exercise of the Warrants (or, following a conversion contemplated by Section 2.6, equity securities of that class issuable directly upon exercise of the Warrants) under this Warrant Certificate with respect to which such determination is being made, but shall exclude the number of equity securities of that class which would be issuable in connection with (i) exercise of the remaining, non-exercised portion of the Warrants under this Warrant Certificate beneficially owned by the Holder or any of its Affiliates or Attribution Parties and (ii) exercise or conversion of the unexercised or nonconverted portion of any other securities of the Company (including, without limitation, any other equivalents to the equity securities of that class) subject to a limitation on conversion or exercise analogous to the limitation contained herein beneficially owned by the Holder or any of its Affiliates or Attribution Parties. |
(b) | Except as set forth in the preceding paragraph (a), for purposes of this Schedule C, beneficial ownership shall be calculated in accordance with Section 13(d) of the U.S. Securities Exchange Act and the rules and regulations promulgated thereunder, it being acknowledged by the Holder that the Company is not representing to the Holder that such calculation is in compliance with Section 13(d) of the U.S. Securities Exchange Act and the Holder is solely responsible for any schedules required to be filed in accordance therewith. |
(c) | To the extent that the limitation contained in this Schedule C applies, the determination of whether and the extent the Warrants under this Warrant Certificate are exercisable (in relation to other securities owned by the Holder together with any Affiliates and Attribution Parties) shall be in the sole discretion of the Holder, and the submission of an Exercise Agreement shall be deemed to be the Holder’s determination of whether and the extent to which the Warrants under this Warrant Certificate are exercisable (in relation to other securities owned by the Holder together with any Affiliates and Attribution Parties), in each case subject to the Beneficial Ownership Limitation, and the Company shall have no obligation to verify or confirm the accuracy of such determination (including any determination as to group status pursuant to the next sentence). Each Exercise Agreement for a Warrant or a portion thereof shall include a written certification made in good faith by the Holder (on behalf of itself and its Attribution Parties and Joint Actors, as applicable) certifying that the proposed exercise complies with the applicable ownership limitations set forth herein. The Company may rely on such certification and shall have no obligation to verify the accuracy thereof, notably with respect to whether or not certain parties are Attribution Parties or Joint Actors of the Holder. In providing its certification, a Holder may rely on the information on |
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outstanding securities as reflected in (A) the Company’s most recent periodic or annual filed reports, (B) a more recent public announcement by the Company or (C) a more recent written notice by the Company or the transfer agent setting forth information on the outstanding securities. Upon the written or oral request of a Holder, the Company shall within one trading day confirm orally and in writing to the Holder the relevant information on outstanding securities of the Company. For clarity, (A) a determination as to any group status as contemplated above shall be determined in accordance with Section 13(d) of the U.S. Securities Exchange Act and the rules and regulations promulgated thereunder; and (B) the number of outstanding equity securities of a class shall be determined after giving effect to the conversion or exercise of securities of the Company, including the Warrants under this Warrant Certificate (to the extent converted or exercised, as permitted herein), by the Holder or its Affiliates or Attribution Parties since the date as of which such number of outstanding equity securities of that class was reported.
(d) | The “Beneficial Ownership Limitation” shall be 4.99% of the number of equity securities of that class outstanding immediately after giving effect to the issuance of equity securities of that class issuable upon conversion of the Class A Earnout Shares issuable upon exercise of the Warrants (or, following a conversion contemplated by Section 2.6, equity securities of that class issuable directly upon exercise of the Warrants) under this Warrant Certificate. The Holder, upon notice to the Company, may increase or decrease the Beneficial Ownership Limitation provisions of this Schedule C, provided that in no event shall the Beneficial Ownership Limitation exceed 9.99% of the number of the equity securities of a class outstanding immediately after giving effect to the issuance of equity securities of that class upon conversion of the Class A Earnout Shares issuable upon exercise of the Warrants (or, following a conversion contemplated by Section 2.6, equity securities of that class issuable directly upon exercise of the Warrants) under this Warrant Certificate held by the Holder, and the provisions of this Schedule C shall continue to apply. Any increase or decrease in the Beneficial Ownership Limitation will not be effective until the 61st day after such notice is delivered to the Company. The provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Schedule C to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the intended Beneficial Ownership Limitation herein contained or to make changes or supplements necessary or desirable to properly give effect to such limitation. The limitations contained in this Schedule C shall apply to a successor holder of this Warrant Certificate. |
For purposes of this Schedule C, “Affiliate” shall have the meaning ascribed to such term under the U.S. Securities Exchange Act, and the rules promulgated thereunder except that, solely for purposes of paragraph (e), “Affiliate” shall have the meaning ascribed to such term under applicable Canadian securities regulation.
(e) | Further, the Company shall not honour or permit any discretionary or mandatory exercise of any securities held by the Holder or any Affiliates or persons acting jointly or in concert with such persons (as determined in accordance with Canadian securities laws, together, the “Joint Actors”) into any equity securities of any class of the Company’s capital to the extent that after giving effect to such exercise, the Holder (together with any Joint Actors) would beneficially own, or have control or direction over, (i) in excess of 19.99% of the voting rights attached to all of the Company's voting securities, or (ii) in excess of 9.99% of the outstanding securities of that class, in each case immediately after giving effect to such exercise on a partially diluted basis in accordance with Canadian securities laws. For purposes of the foregoing calculation, the securities beneficially owned, or over which control or direction is exercised, by the Holder and its Joint Actors shall include the equity securities issuable upon conversion of the Class A Earnout Shares issuable upon the proposed exercise of the portion of this Warrant Certificate or other Warrants then being exercised (or, following a conversion contemplated by Section 2.6, equity securities issuable directly upon exercise of the Warrants upon the proposed exercise of the portion of this Warrant Certificate or other Warrants then being exercised), and any other securities of the applicable class that the Holder or any Joint Actor has the right or obligation to acquire within sixty (60) days, but shall exclude any equity securities issuable in connection with the exercise of the remaining unexercised portion of this Warrant |
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Certificate or any other Warrants to the extent that such remaining portion is, by virtue of this paragraph, not exercisable within sixty (60) days because its exercise would cause the Holder, together with its Joint Actors, to exceed the applicable ownership limitation set forth above. For greater certainty, nothing in this paragraph shall prohibit the partial exercise of this Warrant Certificate or any other Warrants to the extent that, after giving effect to such partial exercise, the Holder, together with its Joint Actors, would not exceed the applicable ownership limitations set forth above. Any portion of this Warrant Certificate or any other Warrants that may not be exercised as a result of this paragraph shall not be deemed to be exercisable by the Holder within sixty (60) days for purposes of calculating the Holder’s beneficial ownership, or control or direction, under Canadian securities laws.
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Exhibit 4.17
THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFER SET FORTH IN A LOCK-UP LETTER AGREEMENT, EFFECTIVE AS OF JULY 10, 2026, AS AMENDED. A COPY OF SUCH LOCK-UP AGREEMENT WILL BE FURNISHED WITHOUT CHARGE BY THE COMPANY TO THE HOLDER HEREOF UPON WRITTEN REQUEST.
UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF MUST NOT TRADE THE SECURITY BEFORE THE DATE THE COMPANY BECAME A REPORTING ISSUER IN ANY PROVINCE OR TERRITORY OF CANADA.
THE SECURITIES ISSUABLE UPON EXERCISE HEREOF ARE SUBJECT TO RESTRICTIONS ON TRANSFER SET FORTH IN THE ARTICLES OF THE COMPANY. A COPY OF SUCH ARTICLES WILL BE FURNISHED WITHOUT CHARGE BY THE COMPANY TO THE HOLDER THEREOF UPON WRITTEN REQUEST.
GENERAL FUSION GROUP LTD.
WARRANT CERTIFICATE
(Warrants to Purchase Class B Earnout Shares)
Warrant Certificate No. 026-EA-[●]
THIS IS TO CERTIFY THAT, for value received, BDC Capital Inc. (the “Holder”) is entitled to subscribe for and purchase from GENERAL FUSION GROUP LTD. (the “Company”) [●] Class B Earnout Shares at a price per share equal to the Exercise Price upon and subject to the further terms, conditions and adjustments set forth in the Terms and Conditions attached hereto as Schedule A and incorporated by reference and deemed to be part hereof.
The Warrants may be exercised at the office of Company at 6020 Russ Baker Way, Richmond, BC V7B 1B4, Canada, Attention: Rob Crystal, Senior Vice President, Finance, or such other address as the Company may from time to time in writing direct (the “Exercise Location”).
Except as otherwise indicated, all capitalized terms used herein have the definitions set out in the Terms and Conditions.
This Warrant is exercisable after the Issue Date.
IN WITNESS WHEREOF the Company has caused this Warrant to be executed by its duly authorized officer.
DATED: September [●], 2026.
GENERAL FUSION GROUP LTD.
Per: | | |
| Name: | |
| Title: Authorized Officer | |
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SCHEDULE a TO WARRANT CERTIFICATE
WARRANT TERMS AND CONDITIONs
Terms and Conditions attached to the Warrant Certificate issued by General Fusion Group Ltd. to the Holder and dated [●], 2026.
ARTICLE 1 - INTERPRETATION
1.1 | Definitions. In these Terms and Conditions, unless there is something in the subject matter or context inconsistent therewith: |
(a) | “Accredited Investor” in respect of any Person that is resident in Canada or any international jurisdiction other than the United States of America, means an accredited investor as defined in National Instrument 45-106 Prospectus Exemptions promulgated by the Canadian Securities Administrators, or in respect of any U.S. Person, means an accredited investor as defined in Rule 501(a) of Regulation D under the U.S. Securities Act; |
(b) | “Arms-length” has the meaning set out under the Income Tax Act (Canada); |
(c) | “Assignee” means the then current shareholder of the Company to whom the Company assigns the Offer, or any portion of it, to; |
(d) | “Board” means the Board of Directors of the Company, as constituted from time to time; |
(e) | “Business Day” means any day except a Saturday or Sunday and legal holidays for Canadian chartered banks in Vancouver, British Columbia; |
(f) | “Capital Reorganization” means the Company changing its Class B Earnout Share structure by way of: i) reclassifying existing Class B Earnout Share classes; or ii) subdividing, redividing or changing its outstanding Class B Earnout Shares into a greater number of Class B Earnout Shares; or iii) reducing, combining or consolidating its outstanding Class B Earnout Shares into a smaller number of Class B Earnout Shares; |
(g) | “Class B Earnout Shares” means the Class B Earnout shares in the capital of the Company; |
(h) | “Common Shares” means Common shares in the capital of the Company (commonly referred to as subordinate voting shares); |
(i) | “Company” means General Fusion Group Ltd.; |
(j) | “Encumbrance” shall mean any encumbrance, lien, claim, charge, hypothec, pledge, mortgage, title retention agreement, security interest of any nature, adverse claim, exception, reservation, easement, right of occupation, any matter capable of registration against title, option, right of pre-emption, privilege or any contract to create any of the foregoing; |
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(k) | “Exercise Price” means US$0.01 per Class B Earnout Share; |
(l) | “Government Entity” means any agent corporation, Crown corporation or department as such terms are defined in the Financial Administration Act; |
(m) | “Holder” means initially BDC Capital Inc. (“BDC”), or its nominee or its assignee, or any Person to whom the Warrant has been Transferred in accordance with this Agreement; |
(n) | “Issue Date” means the date the Warrant Certificate was issued; |
(o) | “Person” means any individual, corporation, undertaking, partnership, trustee, trust or unincorporated association, joint venture, syndicate, sole proprietorship, executor, administrator, or other legal representatives, regulatory body, or agency, government, governmental agency, authority or entity, however designated or constituted; |
(p) | “Plan of Arrangement” means the plan of arrangement under section 288 of the Business Corporations Act (British Columbia) resulting in the consummation of the business combination between Spring Valley Acquisition Corp. III, General Fusion Inc. and 1573562 B.C. Ltd. on July 10, 2026; |
(q) | “Subject Shares” means the Class B Earnout Shares issuable upon exercise of this Warrant or, following a conversion of the Class B Earnout Shares contemplated by Section 2.6, the Common Shares issuable upon exercise of this Warrant. |
(r) | “Transfer” includes any sale, exchange, assignment, gift, bequest, disposition, mortgage, charge, pledge, encumbrance, grant of a security interest or other arrangement by which possession, legal title or beneficial ownership passes from one Person to another, or to the same Person in a different capacity, whether or not voluntarily and whether or not for value, and any agreement to effect any of the foregoing; |
(s) | “U.S. Person” means a U.S. person as defined in Rule 902(k) of Regulation S under the U.S. Securities Act; |
(t) | “U.S. Securities Exchange Act” means the United States Securities Exchange Act of 1934, as amended; |
(u) | “Warrant” means this share purchase warrant entitling the Holder to acquire the Class B Earnout Shares at the Exercise Price per Class B Earnout Share, subject to such adjustments as are provided for in this Warrant Certificate; and |
(v) | “Warrant Certificate” means the certificate to which these Terms and Conditions are attached and all Schedules attached thereto. |
1.2 | Interpretation. |
(a) | Words and phrases defined elsewhere herein or in the Warrant Certificate shall have the particular meanings so ascribed thereto. |
(b) | Words importing the singular number include the plural and vice versa and words importing the masculine gender include the feminine and neuter genders. |
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(c) | Any words with initial capitals not otherwise defined herein shall have the meaning ascribed thereto in the Warrant Exercise Subscription Form. |
(d) | The terms “herein”, “hereby” and similar expressions refer to these Terms and Conditions as the same may be amended or modified from time to time; and the expression “Article” and “Section” followed by a number refer to the specified Article or Section of these Terms and Conditions. |
ARTICLE 2 - EXERCISE OF WARRANTS
2.1 | Warrants Issued in Exchange for Original Warrants. This Warrant Certificate evidences Warrants issued in exchange for warrants to purchase common shares of General Fusion Inc. previously issued by General Fusion Inc. to the Holder on July 9, 2026 (the “Original Warrants”) in connection with the Plan of Arrangement and the Warrant Transfer Agreement dated July 3, 2026 among General Fusion Inc., the Holder and His Majesty the King in the Right of Canada, as represented by the Ministry of Industry. In addition to these Warrants, and concurrently upon issuance of this Warrant Certificate, in exchange for the Original Warrants, the Holder shall receive warrants to purchase Common Shares (the “Common Warrants”), warrants to purchase Class A Earnout shares in the capital of the Company, and warrants to purchase Class C Earnout shares in the capital of the Company (together with these Warrants and Common Warrants, the “Exchanged Warrants”). |
2.2 | Exercise at the Election of Holder. The Holder’s right to subscribe for and purchase Subject Shares under the Warrant may be exercised at any time on or after the Issue Date by delivering the Warrant Certificate along with a duly completed and executed subscription in the form attached hereto as Schedule B (the “Warrant Exercise Subscription Form”) to the Company at the Exercise Location in accordance with the terms of this Warrant Certificate. |
2.3 | Issuance of Shares. The closing of the issuance of the Subject Shares made hereunder as a result of the Holder exercising its Warrant under Section 2.2 shall take place 10:00 am on the third Business Day after the Warrant Certificate, the completed Warrant Exercise Subscription Form and payment of the applicable Exercise Price are delivered to the Company at the Exercise Location. After receipt of the foregoing, the Company shall, by 3:00 p.m. on the fifth Business Day after satisfaction of such delivery requirements, deliver or cause to be delivered to the Holder in book-entry form the Subject Shares and to the extent less the entire Warrant is exercised, the warrant certificate in the same form as the Warrant Certificate in respect of the remainder of the Warrant. |
2.4 | No Fractional Shares. The Company shall not be required to issue fractional Subject Shares or other securities in satisfaction of its obligations hereunder. If any fractional interest in a Subject Share or other security would, except for the provisions of this section, be deliverable upon the exercise of Warrant, the Company shall instead issue the next lesser whole number of Subject Shares or other securities. |
2.5 | Beneficial Ownership Limitations. The exercise of the Warrants shall be subject to the Beneficial Ownership Provisions set forth in Schedule C hereto. |
2.6 | Earnout Conversion Mechanics. |
(a) | Notwithstanding anything else in this Warrant Certificate, to the extent that any Class B Earnout Share underlying the Warrant converts into Common Shares pursuant to the terms of the Company’s articles prior to July 9, 2031, the Warrant shall thereafter entitle the Holder to acquire such number of Common Shares into which such underlying Class B Earnout Share converted, upon payment of the applicable Exercise Price otherwise applicable to such Warrant. |
(b) | To the extent that the Class B Earnout Shares underlying the Warrant do not convert into Common Shares pursuant to the terms of the Company’s articles prior to July 9, 2031, the Warrant shall automatically terminate and cease to be exercisable on July 9, 2031. |
ARTICLE 3 - COVENANTS OF THE CORPORATION
3.1 | Reservation of Shares. The Company will at all times reserve and keep available a sufficient number of Subject Shares for the purpose of enabling it to satisfy its obligations to issue Subject Shares upon the exercise of the Warrant, and the |
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Company shall take all such corporate action as may be necessary in order that the Company have unissued and reserved in its authorized capital and may validly and legally issue as fully paid and non-assessable all Subject Shares which the Holder is entitled to receive on the full exercise of the Warrant in accordance with the provisions hereof.
3.2 | Fully Paid, Validly Issued Shares. The Company warrants that all the Subject Shares issued upon the exercise of the Warrant will be fully paid and non-assessable free from all Encumbrances and duly and validly issued. |
3.3 | Issue in Substitution for Lost Certificate. If the Warrant Certificate becomes mutilated, lost, destroyed or stolen, the Company shall issue and deliver a new Warrant Certificate of like date and tenor as the one mutilated, lost, destroyed or stolen, in exchange for and in place of and upon cancellation of such mutilated, lost, destroyed or stolen Warrant Certificate, at no cost to the Holder, upon the Holder delivering to the Company a statutory declaration of loss and indemnity in the form prescribed by the Company’s constating documents. |
3.4 | Exchange of Certificates. The Holder may exchange a certificate or certificates representing Warrants for one or more new Warrant certificates representing the same aggregate number of Warrants, at no cost to the Holder. |
ARTICLE 4 - MERGER AND SUCCESSORS
4.1 | Company May Consolidate, etc. on Certain Terms. Nothing herein contained shall prevent any amalgamation or merger of the Company with or into any other corporation or corporations, or a conveyance or transfer of all or substantially all the properties and estates of the Company as an entirety to any corporation lawfully entitled to acquire and operate same; provided however that the corporation formed by such amalgamation or merger or which acquires by conveyance or transfer all or substantially all the properties and estates of the Company as an entirety shall be a corporation organized and existing under the laws of Canada or of the United States of America, or any province, state, district or territory thereof, and shall, simultaneously with such amalgamation, merger, conveyance or transfer, assume the due and punctual performance and observance of all the covenants and conditions hereof to be performed or observed by the Company. |
4.2 | Successor Company Substituted. In case the Company, pursuant to Section 4.1 shall be amalgamated or merged with or into any other corporation or corporations, or shall convey or transfer all or substantially all of its properties and estates as an entirety to any other corporation, the successor corporation formed by such consolidation or amalgamation, or into which the Company shall have been amalgamated or merged or which shall have received a conveyance or transfer as aforesaid, shall succeed to and be substituted for the Company hereunder. Such changes in phraseology and form (but not in substance) may be made in the Warrant Certificate and herein as may be appropriate in view of such amalgamation, merger or transfer. |
ARTICLE 5 - ADJUSTMENTS
5.1 | Adjustment of Subscription and Purchase Rights. From and after the Issue Date, the number of Class B Earnout Shares covered by and deliverable upon the exercise of the |
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Warrants are subject to adjustment in the following events, any such adjustment will be done in the following manner:
(a) | if and whenever at any time prior to the exercise of the Warrants, the Company shall undertake Capital Reorganization: in the case where such Capital Reorganization results in the subdividing, redividing or changing its outstanding Class B Earnout Shares into a greater number of Class B Earnout Shares, or results in the reducing, combining or consolidating its outstanding Class B Earnout Shares into a smaller number of Class B Earnout Shares, the number of Class B Earnout Shares obtainable under each Warrant shall be adjusted immediately after the effective date of such Capital Reorganization, by multiplying the number of Class B Earnout Shares theretofore obtainable on the exercise thereof by a fraction of which the numerator shall be the total number of Class B Earnout Shares outstanding immediately after such date and the denominator shall be the total number of Class B Earnout Shares outstanding immediately prior to such date. Such adjustment shall be made successively whenever any event referred to in this subsection shall occur; |
(b) | if and whenever at any time prior to the exercise of the Warrants, there is a reclassification of the Class B Earnout Shares or a capital reorganization of the Company (other than a Capital Reorganization) or a consolidation, amalgamation or merger of the Company with or into any other body corporate, trust, partnership or other entity, or a sale or conveyance of the property and assets of the Company as an entirety or substantially as an entirety to any other body corporate, trust, partnership or other entity, any Holder who has not exercised its right of acquisition, as to the effective date of such reclassification, capital reorganization, consolidation, amalgamation, merger, sale or conveyance, upon the exercise of such right thereafter, shall be entitled to receive and shall accept, in lieu of the number of Class B Earnout Shares such Holder would otherwise be entitled to acquire, the number of shares or other securities or property of the Company or of the body corporate, trust, partnership or other entity resulting from such merger, amalgamation or consolidation, or to which such sale or conveyance may be made, as the case may be, that such Holder would have been entitled to receive on such reclassification, capital reorganization, consolidation, amalgamation, merger, sale or conveyance, if, on the record date or the effective date thereof, as the case may be, the Holder had been the registered holder of the number of Class B Earnout Shares sought to be acquired by it, provided that, if the securities otherwise deliverable to the Holder pursuant to this Section 5.1(b), whether upon exercise, deemed exercise or otherwise in connection with any of the transactions contemplated by this Section 5.1(b), would result in the Holder exceeding any Beneficial Ownership Limitation set forth in Schedule C, then, the Holder shall receive securities, rights or other instruments that are economically equivalent and structured in a manner that permits the Holder to comply with such limitations; |
(c) | if and whenever at any time prior to the exercise of the Warrants the Company shall issue or distribute to all or substantially all the holders of the Class B Earnout Shares: |
(i) | securities of the Company, including Class B Earnout Shares, rights, options or warrants to acquire Class B Earnout Shares of any class or securities exchangeable for or convertible into or exchangeable into any |
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such Class B Earnout Shares, or cash, or property or assets and including evidence of its indebtedness; or
(ii) | any property or other assets, |
then the number of Class B Earnout Shares to be issued by the Company under the Warrants shall, at the time of exercise, be appropriately adjusted and the Holder shall receive, in addition to the number of Class B Earnout Shares in respect of which the right is then being exercised, the aggregate number of Class B Earnout Shares or other securities, cash or property that the Holder would have been entitled to receive as a result of such event if, on the record date thereof, the Holder had been the registered holder of the number of Class B Earnout Shares to which the Holder was theretofore entitled upon the exercise of the Warrants; and
(d) | the adjustments provided for in this Warrant Certificate in the number of Shares and classes of securities which are to be received on the exercise of Warrants are cumulative. After any adjustment pursuant to this section, the term “Class B Earnout Shares” where used in this Warrant Certificate shall be interpreted to mean securities of any class or classes which, as a result of such adjustment and all prior adjustments pursuant to this section, the Holder is entitled to receive upon the exercise of its Warrants, and the number of Class B Earnout Shares indicated by any exercise made pursuant to a Warrant shall be interpreted to mean the number of Class B Earnout Shares or other property or securities a Holder is entitled to receive, as a result of such adjustment and all prior adjustments pursuant to this section, upon the full exercise of a Warrant. |
5.2 | Determination of Adjustments. The adjustments provided for in this Warrant Certificate are cumulative. The Company shall, promptly after each adjustment made hereunder, provide the Holder with a certificate providing the relevant facts and calculations with respect to such adjustments. If any questions shall at any time arise with respect to any adjustments to be made hereunder, such question shall be conclusively determined by an independent firm of Chartered Accountants who shall have access to all appropriate records, and such determination shall be binding upon the Company and the Holder. |
5.3 | Adjustments Post - Earnout Conversion. Following any conversion contemplated by Section 2.6, the adjustment provisions of this Article 5 shall apply, mutatis mutandis, to the Common Shares then issuable upon exercise of the Warrants as though all references in this Article 5 to 'Class B Earnout Shares' were references to such Common Shares. |
ARTICLE 6 - transfers
6.1 | Transfer. |
(a) | The Holder may Transfer, in whole or in parts, the Warrants to any other Person with the Board’s prior approval, such approval to not be unreasonably or arbitrarily withheld, delayed or conditioned. The foregoing Paragraph (a) does not apply to any Transfer of Warrants by BDC to another Government Entity. |
(b) | In connection with any Transfer pursuant to Section 6.1(a), the Person to which the Warrants are transferred shall as a condition of such Transfer enter into an agreement by which it agrees to be bound by the provisions of this Warrant Certificate as if it were an original recipient of this Warrant Certificate and to deliver a certificate in the form provided by the Company certifying the Accredited Investor status of such Person. |
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6.2 | Surrender of Certificate. A Transfer will only be effective upon surrender of the original Warrant Certificate, for registration of Transfer, duly endorsed, or accompanied by a duly executed written instrument of Transfer in form prescribed by the Company from time to time. |
ARTICLE 7 - REPRESENTATIONS
7.1 | Representations of the Company. The Company represents to the Holder that: |
(a) | this Warrant has been duly authorized and executed by the Company and when delivered will be the valid and binding obligation of the Company enforceable in accordance with its terms; |
(b) | the Subject Shares to be received upon the exercise of thereof have been duly authorized and reserved for issuance by the Company and when issued in accordance with the terms hereof, will be validly issued, fully paid and non-assessable; |
(c) | the execution and delivery of this Warrant (i) are not, and the issuance of the Subject Shares upon exercise of this Warrant in accordance with the terms hereof will not be, inconsistent with the Company’s articles or notice of articles, (ii) do not and will not contravene any law, governmental rule or regulation, judgment or order applicable to the Company, (iii) do not and will not contravene any provision of, or constitute a default under, any indenture, mortgage, contract or other instrument of which the Company is a party or by which it is bound and (iv) do not and will not require the consent or approval of, the giving of notice to, the registration with or the taking of any action in respect of or by, any federal, provincial or local government authority or agency or other Person. |
ARTICLE 8 - GENERAL
8.1 | No Impairment. The Company will not, by amendment of its articles or through any reorganization, recapitalization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms to be observed or performed hereunder by the Company, but will at all times in good faith assist in the carrying out of all the provisions of this Section 8.1 and in taking of all such action as may be necessary or appropriate in order to protect the rights of the Holder against impairment. |
8.2 | Further Acts. Each of the Company and the Holder shall at the request of the Holder, and at the expense of the Company, execute and deliver any further documents and do all acts and things as the Holder may reasonably require in order to carry out the true intent and meaning of this Warrant Certificate. |
8.3 | Applicable Law. The terms of this Warrant Certificate shall be construed exclusively in accordance with the laws of the Province of British Columbia and the laws of Canada applicable therein. |
8.4 | Waiver and Amendment. Any term or provision of this Warrant Certificate may be waived at any time by the party entitled to the benefits thereof and any term or provision of this Warrant Certificate may be amended or supplemented at any time by agreement of the |
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Holder and the Company, except that any waiver of any term or condition, or any amendment or supplementation of this Warrant Certificate, must be in writing. A waiver of any breach of failure to enforce any of the terms or conditions of this Warrant Certificate shall not, in any way, affect or limit or act as a waiver of the parties’ rights hereunder at any time to enforce strict compliance thereafter with any term or condition of this Warrant Certificate.
8.5 | Enurement. This Warrant Certificate shall enure to the benefit of and be binding upon the Company and the Holder, and their respective successors and permitted assigns. |
8.6 | Time. Time shall be of the essence herein. |
8.7 | Notices. Any notice, request or other document required or permitted to be given or delivered to the Holder or the Company shall be delivered, or shall be sent by certified or registered mail, postage prepaid or shall be sent by facsimile transmission to such Holder or the Company. |
8.8 | Entire Agreement. The Exchanged Warrants constitute all of the warrants to purchase shares of the Company issuable in exchange for the Original Warrants and replace and supersede the Original Warrants in its entirety. |
8.9 | Signature and Electronic Copies. This Warrant Certificate may be signed by electronic signature, which shall be deemed to be an original and shall be deemed to have the same legal effect and validity as a certificate bearing an original signature. Notwithstanding anything herein, delivery of an executed copy of this Warrant Certificate by electronic transmission or other means of electronic communication capable of producing a printed copy will be deemed to be an original execution and delivery of this Warrant Certificate. If this Warrant Certificate bears an electronic signature as contemplated above and the Company delivers or causes to be delivered this Warrant Certificate by electronic transmission pursuant to this Section 8.9, then the Company represents to the Holder that the electronically transmitted warrant is the only executed copy to be issued to the Holder by the Company or on behalf of the Company. |
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Schedule B TO WARRANT CERTIFICATE
WARRANT EXERCISE SUBSCRIPTION FORM
(“Exercise Agreement”)
TO: General Fusion Group Ltd. (the “Company”)
The undersigned, being the holder of the attached Warrant Certificate (the “Holder”), hereby subscribes for Class B Earnout shares or the corresponding number of Common shares calculated in accordance with Section 2.6 of the attached Warrant Certificate, in each case in the capital of the Company (the “Class B Earnout Shares”) upon and subject to the terms and conditions set forth in the Warrant Certificate and tenders payment of the aggregate Exercise Price (US$0.01) for such Class B Earnout share (or such corresponding number of Common shares) as follows:
☐ | certified cheque, bank draft or solicitors trust cheque in the amount of US$ payable to order of the Warrant Administrator, for the Company, enclosed herewith; |
☐ | Wire transfer of immediately available funds to the Warrant Administrator’s account, for the Company; or |
☐ | Other [Describe] |
Payment, if any, shall be made in accordance with Section 2.3 of Schedule “A” to the Warrant Certificate.
The Holder hereby:
1. | delivers to the Company the enclosed Warrant Certificate and irrevocably accepts the terms and conditions of this Exercise Agreement in respect of the Warrant and subject to the terms and conditions of this Exercise Agreement, hereby exercises the Warrant; |
2. | represents and warrants that: (a) the undersigned has full power and authority to exercise the Warrants and has not sold, assigned or transferred or agreed to sell, assign or Transfer any of such Warrant to any other Person; and (b) is the owner of the Warrant represented by the Warrant Certificate; and |
3. | directs the Company or its transfer agent, upon exercise of the Warrant: (a) to issue or cause to be issued the Subject Shares to which the undersigned is entitled upon the exercise of the Warrant in the name indicated below and to send certificates evidencing such Subject Shares by courier. All questions as to validity, form and eligibility of any surrender of Warrant Certificate hereunder will be reasonably determined by Company and such determination shall be final and binding. |
The Holder on its own behalf and/or on behalf of a beneficial owner of the Warrant (the “Beneficial Holder”) as applicable acknowledges and agrees that:
4. | if it is a company, partnership, unincorporated association or other entity, it has the legal capacity to enter into and be bound by this Exercise Agreement and further certifies that all necessary approvals of directors, shareholders, partners or otherwise have been given and obtained; |
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5. | if it is an individual, it is of the full age of majority and is legally competent to execute this Exercise Agreement and take all action pursuant hereto; and |
6. | this Exercise Agreement has been duly and validly authorized, executed and delivered by and constitutes a legal, valid, binding and enforceable obligation of the Holder; and |
7. | where it is acting as agent for a Beneficial Holder, it is duly authorized to execute and deliver this Exercise Agreement and all other necessary documentation in connection with such subscription on behalf of such Beneficial Holder and this Exercise Agreement has been duly authorized, executed and delivered by or on behalf of, and constitutes a legal, valid, binding and enforceable agreement of, such Beneficial Holder. |
| BOX A | | |
| | | |
| ISSUE SUBJECT SHARES IN THE NAME OF (please print or type): | ||
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| | | |
| (Name) | | |
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| | | |
| (Street Address and Number) | | |
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| (City and Province) | | |
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| (Country and Postal Code) | | |
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| (Telephone - Business) | | |
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| (Email Address) | | |
| BOX B | |
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| SEND SUBJECT SHARES TO (please print or type): | |
| | |
| (Name) | |
| | |
| (Contact Person) | |
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| | |
| (Account reference, if applicable) | |
| | |
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| (Address) | |
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| (Telephone - Business) | |
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| (Email Address) | |
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| BOX C | | ||
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| IN THE CASE OF A PARTIAL EXERCISE NEW CERTIFICATE(S) FOR WARRANTS ARE TO BE ISSUED AS ONE CERTIFICATE OR: | | ||
| | | ||
| ☐In the following denominations (please print or type): | | ||
| | | ||
| | | | |
| | (Name) | | |
| | | | |
| | | | |
| | (Street Address and Number) | | |
| | | | |
| | | | |
| | (City and Province) | | |
| | | | |
| | | | |
| | (Country and Postal Code) | | |
| | | | |
| | | | |
| | (Telephone - Business) | | |
| | | | |
| | | | |
| | (Email Address) | | |
| HOLDER SIGNATURE(S) | ||||
| | | |||
| | | Dated: , 202 | ||
| | | | | |
| Name of Holder: | | Signature of Holder Authorized Representative | | |
| | | | ||
| | | | | |
| Authorized Signature | | Signature of Holder Authorized Representative | | |
| | | | ||
| | | | | |
| Address (please print or type) | | Telephone Number (during business hours) | | |
| | | | ||
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schedule c to warrant certificate
BENEFICIAL OWNERSHIP LIMITATIONS
Beneficial Ownership Limitation.
(a) | The Company shall not effect any exercise of the Warrants or partial exercise of the Warrants under this Warrant Certificate, and the Holder shall not have the right to exercise any portion of the Warrants under this Warrant Certificate, pursuant to Article 2 or otherwise, to the extent that after giving effect to exercise as set forth on the Warrant Exercise Subscription Form attached to the Warrant Certificate (the “Exercise Agreement”), the Holder (together with the Holder’s Affiliates, and any other persons acting as a group together with the Holder or any of the Holder’s Affiliates (such persons, “Attribution Parties”)), would beneficially own in excess of the Beneficial Ownership Limitation (as defined below). For purposes of the foregoing sentence, the number of equity securities of a class beneficially owned by the Holder and its Affiliates and Attribution Parties shall include the number of equity securities of that class issuable upon conversion of the Class B Earnout Shares issuable upon exercise of the Warrants (or, following a conversion contemplated by Section 2.6, equity securities of that class issuable directly upon exercise of the Warrants) under this Warrant Certificate with respect to which such determination is being made, but shall exclude the number of equity securities of that class which would be issuable in connection with (i) exercise of the remaining, non-exercised portion of the Warrants under this Warrant Certificate beneficially owned by the Holder or any of its Affiliates or Attribution Parties and (ii) exercise or conversion of the unexercised or nonconverted portion of any other securities of the Company (including, without limitation, any other equivalents to the equity securities of that class) subject to a limitation on conversion or exercise analogous to the limitation contained herein beneficially owned by the Holder or any of its Affiliates or Attribution Parties. |
(b) | Except as set forth in the preceding paragraph (a), for purposes of this Schedule C, beneficial ownership shall be calculated in accordance with Section 13(d) of the U.S. Securities Exchange Act and the rules and regulations promulgated thereunder, it being acknowledged by the Holder that the Company is not representing to the Holder that such calculation is in compliance with Section 13(d) of the U.S. Securities Exchange Act and the Holder is solely responsible for any schedules required to be filed in accordance therewith. |
(c) | To the extent that the limitation contained in this Schedule C applies, the determination of whether and the extent the Warrants under this Warrant Certificate are exercisable (in relation to other securities owned by the Holder together with any Affiliates and Attribution Parties) shall be in the sole discretion of the Holder, and the submission of an Exercise Agreement shall be deemed to be the Holder’s determination of whether and the extent to which the Warrants under this Warrant Certificate are exercisable (in relation to other securities owned by the Holder together with any Affiliates and Attribution Parties), in each case subject to the Beneficial Ownership Limitation, and the Company shall have no obligation to verify or confirm the accuracy of such determination (including any determination as to group status pursuant to the next sentence). Each Exercise Agreement for a Warrant or a portion thereof shall include a written certification made in good faith by the Holder (on behalf of itself and its Attribution Parties and Joint Actors, as applicable) certifying that the proposed exercise complies with the applicable ownership limitations set forth herein. The Company may rely on such certification and shall have no obligation to verify the accuracy thereof, notably with respect to whether or not certain parties are Attribution Parties or Joint Actors of the Holder. In providing its certification, a Holder may rely on the information on |
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outstanding securities as reflected in (A) the Company’s most recent periodic or annual filed reports, (B) a more recent public announcement by the Company or (C) a more recent written notice by the Company or the transfer agent setting forth information on the outstanding securities. Upon the written or oral request of a Holder, the Company shall within one trading day confirm orally and in writing to the Holder the relevant information on outstanding securities of the Company. For clarity, (A) a determination as to any group status as contemplated above shall be determined in accordance with Section 13(d) of the U.S. Securities Exchange Act and the rules and regulations promulgated thereunder; and (B) the number of outstanding equity securities of a class shall be determined after giving effect to the conversion or exercise of securities of the Company, including the Warrants under this Warrant Certificate (to the extent converted or exercised, as permitted herein), by the Holder or its Affiliates or Attribution Parties since the date as of which such number of outstanding equity securities of that class was reported.
(d) | The “Beneficial Ownership Limitation” shall be 4.99% of the number of equity securities of that class outstanding immediately after giving effect to the issuance of equity of that class securities issuable upon conversion of the Class B Earnout Shares issuable upon exercise of the Warrants (or, following a conversion contemplated by Section 2.6, equity securities of that class issuable directly upon exercise of the Warrants) under this Warrant Certificate. The Holder, upon notice to the Company, may increase or decrease the Beneficial Ownership Limitation provisions of this Schedule C, provided that in no event shall the Beneficial Ownership Limitation exceed 9.99% of the number of the equity securities of a class outstanding immediately after giving effect to the issuance of equity securities of that class upon conversion of the Class B Earnout Shares issuable upon exercise of the Warrants (or, following a conversion contemplated by Section 2.6, equity securities of that class issuable directly upon exercise of the Warrants) under this Warrant Certificate held by the Holder, and the provisions of this Schedule C shall continue to apply. Any increase or decrease in the Beneficial Ownership Limitation will not be effective until the 61st day after such notice is delivered to the Company. The provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Schedule C to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the intended Beneficial Ownership Limitation herein contained or to make changes or supplements necessary or desirable to properly give effect to such limitation. The limitations contained in this Schedule C shall apply to a successor holder of this Warrant Certificate. |
For purposes of this Schedule C, “Affiliate” shall have the meaning ascribed to such term under the U.S. Securities Exchange Act, and the rules promulgated thereunder except that, solely for purposes of paragraph (e), “Affiliate” shall have the meaning ascribed to such term under applicable Canadian securities regulation.
(e) | Further, the Company shall not honour or permit any discretionary or mandatory exercise of any securities held by the Holder or any Affiliates or persons acting jointly or in concert with such persons (as determined in accordance with Canadian securities laws, together, the “Joint Actors”) into any equity securities of any class of the Company’s capital to the extent that after giving effect to such exercise, the Holder (together with any Joint Actors) would beneficially own, or have control or direction over, (i) in excess of 19.99% of the voting rights attached to all of the Company’s voting securities, or (ii) in excess of 9.99% of the outstanding securities of that class, in each case immediately after giving effect to such exercise on a partially diluted basis in accordance with Canadian securities laws. For purposes of the foregoing calculation, the securities beneficially owned, or over which control or direction is exercised, by the Holder and its Joint Actors shall include the equity securities issuable upon conversion of the Class B Earnout Shares issuable upon the proposed exercise of the portion of this Warrant Certificate or other Warrants then being exercised (or, following a conversion contemplated by Section 2.6, equity securities issuable directly upon exercise of the Warrants upon the proposed exercise of the portion of this Warrant Certificate or other Warrants then being exercised), and any other securities of the applicable class that the Holder or any Joint Actor has the right or obligation to acquire within sixty (60) days, but shall exclude any equity securities issuable in connection with the exercise of the remaining unexercised portion of this Warrant |
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Certificate or any other Warrants to the extent that such remaining portion is, by virtue of this paragraph, not exercisable within sixty (60) days because its exercise would cause the Holder, together with its Joint Actors, to exceed the applicable ownership limitation set forth above. For greater certainty, nothing in this paragraph shall prohibit the partial exercise of this Warrant Certificate or any other Warrants to the extent that, after giving effect to such partial exercise, the Holder, together with its Joint Actors, would not exceed the applicable ownership limitations set forth above. Any portion of this Warrant Certificate or any other Warrants that may not be exercised as a result of this paragraph shall not be deemed to be exercisable by the Holder within sixty (60) days for purposes of calculating the Holder’s beneficial ownership, or control or direction, under Canadian securities laws.
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Exhibit 4.18
THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFER SET FORTH IN A LOCK-UP LETTER AGREEMENT, EFFECTIVE AS OF JULY 10, 2026, AS AMENDED. A COPY OF SUCH LOCK-UP AGREEMENT WILL BE FURNISHED WITHOUT CHARGE BY THE COMPANY TO THE HOLDER HEREOF UPON WRITTEN REQUEST.
UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF MUST NOT TRADE THE SECURITY BEFORE THE DATE THE COMPANY BECAME A REPORTING ISSUER IN ANY PROVINCE OR TERRITORY OF CANADA.
THE SECURITIES ISSUABLE UPON EXERCISE HEREOF ARE SUBJECT TO RESTRICTIONS ON TRANSFER SET FORTH IN THE ARTICLES OF THE COMPANY. A COPY OF SUCH ARTICLES WILL BE FURNISHED WITHOUT CHARGE BY THE COMPANY TO THE HOLDER THEREOF UPON WRITTEN REQUEST.
GENERAL FUSION GROUP LTD.
WARRANT CERTIFICATE
(Warrants to Purchase Class C Earnout Shares)
Warrant Certificate No. 026-EA-[●]
THIS IS TO CERTIFY THAT, for value received, BDC Capital Inc. (the “Holder”) is entitled to subscribe for and purchase from GENERAL FUSION GROUP LTD. (the “Company”) [●] Class C Earnout Shares at a price per share equal to the Exercise Price upon and subject to the further terms, conditions and adjustments set forth in the Terms and Conditions attached hereto as Schedule A and incorporated by reference and deemed to be part hereof.
The Warrants may be exercised at the office of Company at 6020 Russ Baker Way, Richmond, BC V7B 1B4, Canada, Attention: Rob Crystal, Senior Vice President, Finance, or such other address as the Company may from time to time in writing direct (the “Exercise Location”).
Except as otherwise indicated, all capitalized terms used herein have the definitions set out in the Terms and Conditions.
This Warrant is exercisable after the Issue Date.
IN WITNESS WHEREOF the Company has caused this Warrant to be executed by its duly authorized officer.
DATED: September [●], 2026.
GENERAL FUSION GROUP LTD.
Per: | | | |
| Name: | | |
| Title: | Authorized Officer | |
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SCHEDULE A TO WARRANT CERTIFICATE
WARRANT TERMS AND CONDITIONS
Terms and Conditions attached to the Warrant Certificate issued by General Fusion Group Ltd. to the Holder and dated [●], 2026.
ARTICLE 1 - INTERPRETATION
1.1 | Definitions. In these Terms and Conditions, unless there is something in the subject matter or context inconsistent therewith: |
(a) | “Accredited Investor” in respect of any Person that is resident in Canada or any international jurisdiction other than the United States of America, means an accredited investor as defined in National Instrument 45-106 Prospectus Exemptions promulgated by the Canadian Securities Administrators, or in respect of any U.S. Person, means an accredited investor as defined in Rule 501(a) of Regulation D under the U.S. Securities Act; |
(b) | “Arms-length” has the meaning set out under the Income Tax Act (Canada); |
(c) | “Assignee” means the then current shareholder of the Company to whom the Company assigns the Offer, or any portion of it, to; |
(d) | “Board” means the Board of Directors of the Company, as constituted from time to time; |
(e) | “Business Day” means any day except a Saturday or Sunday and legal holidays for Canadian chartered banks in Vancouver, British Columbia; |
(f) | “Capital Reorganization” means the Company changing its Class C Earnout Share structure by way of: i) reclassifying existing Class C Earnout Share classes; or ii) subdividing, redividing or changing its outstanding Class C Earnout Shares into a greater number of Class C Earnout Shares; or iii) reducing, combining or consolidating its outstanding Class C Earnout Shares into a smaller number of Class C Earnout Shares; |
(g) | “Class C Earnout Shares” means the Class C Earnout shares in the capital of the Company; |
(h) | “Common Shares” means Common shares in the capital of the Company (commonly referred to as subordinate voting shares); |
(i) | “Company” means General Fusion Group Ltd.; |
(j) | “Encumbrance” shall mean any encumbrance, lien, claim, charge, hypothec, pledge, mortgage, title retention agreement, security interest of any nature, adverse claim, exception, reservation, easement, right of occupation, any matter capable of registration against title, option, right of pre-emption, privilege or any contract to create any of the foregoing; |
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(k) | “Exercise Price” means US$0.01 per Class C Earnout Share; |
(l) | “Government Entity” means any agent corporation, Crown corporation or department as such terms are defined in the Financial Administration Act; |
(m) | “Holder” means initially BDC Capital Inc. (“BDC”), or its nominee or its assignee, or any Person to whom the Warrant has been Transferred in accordance with this Agreement; |
(n) | “Issue Date” means the date the Warrant Certificate was issued; |
(o) | “Person” means any individual, corporation, undertaking, partnership, trustee, trust or unincorporated association, joint venture, syndicate, sole proprietorship, executor, administrator, or other legal representatives, regulatory body, or agency, government, governmental agency, authority or entity, however designated or constituted; |
(p) | “Plan of Arrangement” means the plan of arrangement under section 288 of the Business Corporations Act (British Columbia) resulting in the consummation of the business combination between Spring Valley Acquisition Corp. III, General Fusion Inc. and 1573562 B.C. Ltd. on July 10, 2026; |
(q) | “Subject Shares” means the Class C Earnout Shares issuable upon exercise of this Warrant or, following a conversion of the Class C Earnout Shares contemplated by Section 2.6, the Common Shares issuable upon exercise of this Warrant. |
(r) | “Transfer” includes any sale, exchange, assignment, gift, bequest, disposition, mortgage, charge, pledge, encumbrance, grant of a security interest or other arrangement by which possession, legal title or beneficial ownership passes from one Person to another, or to the same Person in a different capacity, whether or not voluntarily and whether or not for value, and any agreement to effect any of the foregoing; |
(s) | “U.S. Person” means a U.S. person as defined in Rule 902(k) of Regulation S under the U.S. Securities Act; |
(t) | “U.S. Securities Exchange Act” means the United States Securities Exchange Act of 1934, as amended; |
(u) | “Warrant” means this share purchase warrant entitling the Holder to acquire the Class C Earnout Shares at the Exercise Price per Class C Earnout Share, subject to such adjustments as are provided for in this Warrant Certificate; and |
(v) | “Warrant Certificate” means the certificate to which these Terms and Conditions are attached and all Schedules attached thereto. |
1.2 | Interpretation. |
(a) | Words and phrases defined elsewhere herein or in the Warrant Certificate shall have the particular meanings so ascribed thereto. |
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(b) | Words importing the singular number include the plural and vice versa and words importing the masculine gender include the feminine and neuter genders. |
(c) | Any words with initial capitals not otherwise defined herein shall have the meaning ascribed thereto in the Warrant Exercise Subscription Form. |
(d) | The terms “herein”, “hereby” and similar expressions refer to these Terms and Conditions as the same may be amended or modified from time to time; and the expression “Article” and “Section” followed by a number refer to the specified Article or Section of these Terms and Conditions. |
ARTICLE 2 - EXERCISE OF WARRANTS
2.1 | Warrants Issued in Exchange for Original Warrants. This Warrant Certificate evidences Warrants issued in exchange for warrants to purchase common shares of General Fusion Inc. previously issued by General Fusion Inc. to the Holder on July 9, 2026 (the “Original Warrants”) in connection with the Plan of Arrangement and the Warrant Transfer Agreement dated July 3, 2026 among General Fusion Inc., the Holder and His Majesty the King in the Right of Canada, as represented by the Ministry of Industry. In addition to these Warrants, and concurrently upon issuance of this Warrant Certificate, in exchange for the Original Warrants, the Holder shall receive warrants to purchase Common Shares (the “Common Warrants”), warrants to purchase Class A Earnout shares in the capital of the Company, and warrants to purchase Class B Earnout shares in the capital of the Company (together with these Warrants and Common Warrants, the “Exchanged Warrants”). |
2.2 | Exercise at the Election of Holder. The Holder’s right to subscribe for and purchase Subject Shares under the Warrant may be exercised at any time on or after the Issue Date by delivering the Warrant Certificate along with a duly completed and executed subscription in the form attached hereto as Schedule B (the “Warrant Exercise Subscription Form”) to the Company at the Exercise Location in accordance with the terms of this Warrant Certificate. |
2.3 | Issuance of Shares. The closing of the issuance of the Subject Shares made hereunder as a result of the Holder exercising its Warrant under Section 2.2 shall take place 10:00 am on the third Business Day after the Warrant Certificate, the completed Warrant Exercise Subscription Form and payment of the applicable Exercise Price are delivered to the Company at the Exercise Location. After receipt of the foregoing, the Company shall, by 3:00 p.m. on the fifth Business Day after satisfaction of such delivery requirements, deliver or cause to be delivered to the Holder in book-entry form the Subject Shares and to the extent less the entire Warrant is exercised, the warrant certificate in the same form as the Warrant Certificate in respect of the remainder of the Warrant. |
2.4 | No Fractional Shares. The Company shall not be required to issue fractional Subject Shares or other securities in satisfaction of its obligations hereunder. If any fractional interest in a Subject Share or other security would, except for the provisions of this section, be deliverable upon the exercise of Warrant, the Company shall instead issue the next lesser whole number of Subject Shares or other securities. |
2.5 | Beneficial Ownership Limitations. The exercise of the Warrants shall be subject to the Beneficial Ownership Provisions set forth in Schedule C hereto. |
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2.6 | Earnout Conversion Mechanics. |
(a) | Notwithstanding anything else in this Warrant Certificate, to the extent that any Class C Earnout Share underlying the Warrant converts into Common Shares pursuant to the terms of the Company’s articles prior to July 9, 2031, the Warrant shall thereafter entitle the Holder to acquire such number of Common Shares into which such underlying Class C Earnout Share converted, upon payment of the applicable Exercise Price otherwise applicable to such Warrant. |
(b) | To the extent that the Class C Earnout Shares underlying the Warrant do not convert into Common Shares pursuant to the terms of the Company’s articles prior to July 9, 2031, the Warrant shall automatically terminate and cease to be exercisable on July 9, 2031. |
ARTICLE 3 - COVENANTS OF THE CORPORATION
3.1 | Reservation of Shares. The Company will at all times reserve and keep available a sufficient number of Subject Shares for the purpose of enabling it to satisfy its obligations to issue Subject Shares upon the exercise of the Warrant, and the Company shall take all such corporate action as may be necessary in order that the Company have unissued and reserved in its authorized capital and may validly and legally issue as fully paid and non-assessable all Subject Shares which the Holder is entitled to receive on the full exercise of the Warrant in accordance with the provisions hereof. |
3.2 | Fully Paid, Validly Issued Shares. The Company warrants that all the Subject Shares issued upon the exercise of the Warrant will be fully paid and non-assessable free from all Encumbrances and duly and validly issued. |
3.3 | Issue in Substitution for Lost Certificate. If the Warrant Certificate becomes mutilated, lost, destroyed or stolen, the Company shall issue and deliver a new Warrant Certificate of like date and tenor as the one mutilated, lost, destroyed or stolen, in exchange for and in place of and upon cancellation of such mutilated, lost, destroyed or stolen Warrant Certificate, at no cost to the Holder, upon the Holder delivering to the Company a statutory declaration of loss and indemnity in the form prescribed by the Company’s constating documents. |
3.4 | Exchange of Certificates. The Holder may exchange a certificate or certificates representing Warrants for one or more new Warrant certificates representing the same aggregate number of Warrants, at no cost to the Holder. |
ARTICLE 4 - MERGER AND SUCCESSORS
4.1 | Company May Consolidate, etc. on Certain Terms. Nothing herein contained shall prevent any amalgamation or merger of the Company with or into any other corporation or corporations, or a conveyance or transfer of all or substantially all the properties and estates of the Company as an entirety to any corporation lawfully entitled to acquire and operate same; provided however that the corporation formed by such amalgamation or merger or which acquires by conveyance or transfer all or substantially all the properties and estates of the Company as an entirety shall be a corporation organized and existing under the laws of Canada or of the United States of America, or any province, state, district or territory thereof, and shall, simultaneously with such amalgamation, merger, conveyance or |
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transfer, assume the due and punctual performance and observance of all the covenants and conditions hereof to be performed or observed by the Company.
4.2 | Successor Company Substituted. In case the Company, pursuant to Section 4.1 shall be amalgamated or merged with or into any other corporation or corporations, or shall convey or transfer all or substantially all of its properties and estates as an entirety to any other corporation, the successor corporation formed by such consolidation or amalgamation, or into which the Company shall have been amalgamated or merged or which shall have received a conveyance or transfer as aforesaid, shall succeed to and be substituted for the Company hereunder. Such changes in phraseology and form (but not in substance) may be made in the Warrant Certificate and herein as may be appropriate in view of such amalgamation, merger or transfer. |
ARTICLE 5 - ADJUSTMENTS
5.1 | Adjustment of Subscription and Purchase Rights. From and after the Issue Date, the number of Class C Earnout Shares covered by and deliverable upon the exercise of the Warrants are subject to adjustment in the following events, any such adjustment will be done in the following manner: |
(a) | if and whenever at any time prior to the exercise of the Warrants, the Company shall undertake Capital Reorganization: in the case where such Capital Reorganization results in the subdividing, redividing or changing its outstanding Class C Earnout Shares into a greater number of Class C Earnout Shares, or results in the reducing, combining or consolidating its outstanding Class C Earnout Shares into a smaller number of Class C Earnout Shares, the number of Class C Earnout Shares obtainable under each Warrant shall be adjusted immediately after the effective date of such Capital Reorganization, by multiplying the number of Class C Earnout Shares theretofore obtainable on the exercise thereof by a fraction of which the numerator shall be the total number of Class C Earnout Shares outstanding immediately after such date and the denominator shall be the total number of Class C Earnout Shares outstanding immediately prior to such date. Such adjustment shall be made successively whenever any event referred to in this subsection shall occur; |
(b) | if and whenever at any time prior to the exercise of the Warrants, there is a reclassification of the Class C Earnout Shares or a capital reorganization of the Company (other than a Capital Reorganization) or a consolidation, amalgamation or merger of the Company with or into any other body corporate, trust, partnership or other entity, or a sale or conveyance of the property and assets of the Company as an entirety or substantially as an entirety to any other body corporate, trust, partnership or other entity, any Holder who has not exercised its right of acquisition, as to the effective date of such reclassification, capital reorganization, consolidation, amalgamation, merger, sale or conveyance, upon the exercise of such right thereafter, shall be entitled to receive and shall accept, in lieu of the number of Class C Earnout Shares such Holder would otherwise be entitled to acquire, the number of shares or other securities or property of the Company or of the body corporate, trust, partnership or other entity resulting from such merger, amalgamation or consolidation, or to which such sale or conveyance may be made, as the case may be, that such Holder would have been entitled to receive on such reclassification, capital reorganization, consolidation, amalgamation, merger, sale |
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or conveyance, if, on the record date or the effective date thereof, as the case may be, the Holder had been the registered holder of the number of Class C Earnout Shares sought to be acquired by it, provided that, if the securities otherwise deliverable to the Holder pursuant to this Section 5.1(b), whether upon exercise, deemed exercise or otherwise in connection with any of the transactions contemplated by this Section 5.1(b), would result in the Holder exceeding any Beneficial Ownership Limitation set forth in Schedule C, then, the Holder shall receive securities, rights or other instruments that are economically equivalent and structured in a manner that permits the Holder to comply with such limitations;
(c) | if and whenever at any time prior to the exercise of the Warrants the Company shall issue or distribute to all or substantially all the holders of the Class C Earnout Shares: |
(i) | securities of the Company, including Class C Earnout Shares, rights, options or warrants to acquire Class C Earnout Shares of any class or securities exchangeable for or convertible into or exchangeable into any such Class C Earnout Shares, or cash, or property or assets and including evidence of its indebtedness; or |
(ii) | any property or other assets, |
then the number of Class C Earnout Shares to be issued by the Company under the Warrants shall, at the time of exercise, be appropriately adjusted and the Holder shall receive, in addition to the number of Class C Earnout Shares in respect of which the right is then being exercised, the aggregate number of Class C Earnout Shares or other securities, cash or property that the Holder would have been entitled to receive as a result of such event if, on the record date thereof, the Holder had been the registered holder of the number of Class C Earnout Shares to which the Holder was theretofore entitled upon the exercise of the Warrants; and
(d) | the adjustments provided for in this Warrant Certificate in the number of Shares and classes of securities which are to be received on the exercise of Warrants are cumulative. After any adjustment pursuant to this section, the term “Class C Earnout Shares” where used in this Warrant Certificate shall be interpreted to mean securities of any class or classes which, as a result of such adjustment and all prior adjustments pursuant to this section, the Holder is entitled to receive upon the exercise of its Warrants, and the number of Class C Earnout Shares indicated by any exercise made pursuant to a Warrant shall be interpreted to mean the number of Class C Earnout Shares or other property or securities a Holder is entitled to receive, as a result of such adjustment and all prior adjustments pursuant to this section, upon the full exercise of a Warrant. |
5.2 | Determination of Adjustments. The adjustments provided for in this Warrant Certificate are cumulative. The Company shall, promptly after each adjustment made hereunder, provide the Holder with a certificate providing the relevant facts and calculations with respect to such adjustments. If any questions shall at any time arise with respect to any adjustments to be made hereunder, such question shall be conclusively determined by an independent firm of Chartered Accountants who shall have access to all appropriate records, and such determination shall be binding upon the Company and the Holder. |
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5.3 | Adjustments Post-Earnout Conversion. Following any conversion contemplated by Section 2.6, the adjustment provisions of this Article 5 shall apply, mutatis mutandis, to the Common Shares then issuable upon exercise of the Warrants as though all references in this Article 5 to ‘Class C Earnout Shares’ were references to such Common Shares. |
ARTICLE 6 - TRANSFERS
6.1 | Transfer. |
(a) | The Holder may Transfer, in whole or in parts, the Warrants to any other Person with the Board’s prior approval, such approval to not be unreasonably or arbitrarily withheld, delayed or conditioned. The foregoing Paragraph (a) does not apply to any Transfer of Warrants by BDC to another Government Entity. |
(b) | In connection with any Transfer pursuant to Section 6.1(a), the Person to which the Warrants are transferred shall as a condition of such Transfer enter into an agreement by which it agrees to be bound by the provisions of this Warrant Certificate as if it were an original recipient of this Warrant Certificate and to deliver a certificate in the form provided by the Company certifying the Accredited Investor status of such Person. |
6.2 | Surrender of Certificate. A Transfer will only be effective upon surrender of the original Warrant Certificate, for registration of Transfer, duly endorsed, or accompanied by a duly executed written instrument of Transfer in form prescribed by the Company from time to time. |
ARTICLE 7 - REPRESENTATIONS
7.1 | Representations of the Company. The Company represents to the Holder that: |
(a) | this Warrant has been duly authorized and executed by the Company and when delivered will be the valid and binding obligation of the Company enforceable in accordance with its terms; |
(b) | the Subject Shares to be received upon the exercise of thereof have been duly authorized and reserved for issuance by the Company and when issued in accordance with the terms hereof, will be validly issued, fully paid and non-assessable; |
(c) | the execution and delivery of this Warrant (i) are not, and the issuance of the Subject Shares upon exercise of this Warrant in accordance with the terms hereof will not be, inconsistent with the Company’s articles or notice of articles, (ii) do not and will not contravene any law, governmental rule or regulation, judgment or order applicable to the Company, (iii) do not and will not contravene any provision of, or constitute a default under, any indenture, mortgage, contract or other instrument of which the Company is a party or by which it is bound and (iv) do not and will not require the consent or approval of, the giving of notice to, the registration with or the taking of any action in respect of or by, any federal, provincial or local government authority or agency or other Person. |
ARTICLE 8 - GENERAL
8.1 | No Impairment. The Company will not, by amendment of its articles or through any reorganization, recapitalization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms to be observed or performed hereunder by the Company, |
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but will at all times in good faith assist in the carrying out of all the provisions of this Section 8.1 and in taking of all such action as may be necessary or appropriate in order to protect the rights of the Holder against impairment.
8.2 | Further Acts. Each of the Company and the Holder shall at the request of the Holder, and at the expense of the Company, execute and deliver any further documents and do all acts and things as the Holder may reasonably require in order to carry out the true intent and meaning of this Warrant Certificate. |
8.3 | Applicable Law. The terms of this Warrant Certificate shall be construed exclusively in accordance with the laws of the Province of British Columbia and the laws of Canada applicable therein. |
8.4 | Waiver and Amendment. Any term or provision of this Warrant Certificate may be waived at any time by the party entitled to the benefits thereof and any term or provision of this Warrant Certificate may be amended or supplemented at any time by agreement of the Holder and the Company, except that any waiver of any term or condition, or any amendment or supplementation of this Warrant Certificate, must be in writing. A waiver of any breach of failure to enforce any of the terms or conditions of this Warrant Certificate shall not, in any way, affect or limit or act as a waiver of the parties’ rights hereunder at any time to enforce strict compliance thereafter with any term or condition of this Warrant Certificate. |
8.5 | Enurement. This Warrant Certificate shall enure to the benefit of and be binding upon the Company and the Holder, and their respective successors and permitted assigns. |
8.6 | Time. Time shall be of the essence herein. |
8.7 | Notices. Any notice, request or other document required or permitted to be given or delivered to the Holder or the Company shall be delivered, or shall be sent by certified or registered mail, postage prepaid or shall be sent by facsimile transmission to such Holder or the Company. |
8.8 | Entire Agreement. The Exchanged Warrants constitute all of the warrants to purchase shares of the Company issuable in exchange for the Original Warrants and replace and supersede the Original Warrants in its entirety. |
8.9 | Signature and Electronic Copies. This Warrant Certificate may be signed by electronic signature, which shall be deemed to be an original and shall be deemed to have the same legal effect and validity as a certificate bearing an original signature. Notwithstanding anything herein, delivery of an executed copy of this Warrant Certificate by electronic transmission or other means of electronic communication capable of producing a printed copy will be deemed to be an original execution and delivery of this Warrant Certificate. If this Warrant Certificate bears an electronic signature as contemplated above and the Company delivers or causes to be delivered this Warrant Certificate by electronic transmission pursuant to this Section 8.9, then the Company represents to the Holder that the electronically transmitted warrant is the only executed copy to be issued to the Holder by the Company or on behalf of the Company. |
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SCHEDULE B TO WARRANT CERTIFICATE
WARRANT EXERCISE SUBSCRIPTION FORM
(“Exercise Agreement”)
TO: General Fusion Group Ltd. (the “Company”)
The undersigned, being the holder of the attached Warrant Certificate (the “Holder”), hereby subscribes for ____________________ Class C Earnout shares or the corresponding number of Common shares calculated in accordance with Section 2.6 of the attached Warrant Certificate, in each case in the capital of the Company (the “Class C Earnout Shares”) upon and subject to the terms and conditions set forth in the Warrant Certificate and tenders payment of the aggregate Exercise Price (US$0.01) for such Class C Earnout share (or such corresponding number of Common shares) as follows:
☐ | certified cheque, bank draft or solicitors trust cheque in the amount of US$ payable to order of the Warrant Administrator, for the Company, enclosed herewith; |
☐ | Wire transfer of immediately available funds to the Warrant Administrator’s account, for the Company; or |
☐ | Other [Describe] |
Payment, if any, shall be made in accordance with Section 2.3 of Schedule “A” to the Warrant Certificate.
The Holder hereby:
1. | delivers to the Company the enclosed Warrant Certificate and irrevocably accepts the terms and conditions of this Exercise Agreement in respect of the Warrant and subject to the terms and conditions of this Exercise Agreement, hereby exercises the Warrant; |
2. | represents and warrants that: (a) the undersigned has full power and authority to exercise the Warrants and has not sold, assigned or transferred or agreed to sell, assign or Transfer any of such Warrant to any other Person; and (b) is the owner of the Warrant represented by the Warrant Certificate; and |
3. | directs the Company or its transfer agent, upon exercise of the Warrant: (a) to issue or cause to be issued the Subject Shares to which the undersigned is entitled upon the exercise of the Warrant in the name indicated below and to send certificates evidencing such Subject Shares by courier. All questions as to validity, form and eligibility of any surrender of Warrant Certificate hereunder will be reasonably determined by Company and such determination shall be final and binding. |
The Holder on its own behalf and/or on behalf of a beneficial owner of the Warrant (the “Beneficial Holder”) as applicable acknowledges and agrees that:
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4. | if it is a company, partnership, unincorporated association or other entity, it has the legal capacity to enter into and be bound by this Exercise Agreement and further certifies that all necessary approvals of directors, shareholders, partners or otherwise have been given and obtained; |
5. | if it is an individual, it is of the full age of majority and is legally competent to execute this Exercise Agreement and take all action pursuant hereto; and |
6. | this Exercise Agreement has been duly and validly authorized, executed and delivered by and constitutes a legal, valid, binding and enforceable obligation of the Holder; and |
7. | where it is acting as agent for a Beneficial Holder, it is duly authorized to execute and deliver this Exercise Agreement and all other necessary documentation in connection with such subscription on behalf of such Beneficial Holder and this Exercise Agreement has been duly authorized, executed and delivered by or on behalf of, and constitutes a legal, valid, binding and enforceable agreement of, such Beneficial Holder. |
| BOX A | | |
| | | |
| ISSUE SUBJECT SHARES IN THE NAME OF (please print or type): | ||
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| (Name) | | |
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| | | |
| (Street Address and Number) | | |
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| (City and Province) | | |
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| (Country and Postal Code) | | |
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| (Telephone - Business) | | |
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| (Email Address) | | |
BOX B | ||
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| SEND SUBJECT SHARES TO (please print or type): | |
| | |
| (Name) | |
| | |
| | |
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| (Contact Person) | |
| | |
| | |
| (Account reference, if applicable) | |
| | |
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| (Address) | |
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| (Telephone - Business) | |
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| (Email Address) | |
| BOX C | | ||
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| IN THE CASE OF A PARTIAL EXERCISE NEW CERTIFICATE(S) FOR WARRANTS ARE TO BE ISSUED AS ONE CERTIFICATE OR: | | ||
| | | ||
| ☐In the following denominations (please print or type): | | ||
| | | ||
| | | | |
| | (Name) | | |
| | | | |
| | | | |
| | (Street Address and Number) | | |
| | | | |
| | | | |
| | (City and Province) | | |
| | | | |
| | | | |
| | (Country and Postal Code) | | |
| | | | |
| | | | |
| | (Telephone - Business) | | |
| | | | |
| | | | |
| | (Email Address) | | |
| HOLDER SIGNATURE(S) | ||
| | | |
| | | Dated: , 202 |
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| | | | |
| Name of Holder: | | Signature of Holder Authorized Representative | |
| | | | |
| | | | |
| Authorized Signature | | Signature of Holder Authorized Representative | |
| | | | |
| | | | |
| Address (please print or type) | | Telephone Number (during business hours) | |
| | | | |
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SCHEDULE C TO WARRANT CERTIFICATE
BENEFICIAL OWNERSHIP LIMITATIONS
Beneficial Ownership Limitation.
(a) | The Company shall not effect any exercise of the Warrants or partial exercise of the Warrants under this Warrant Certificate, and the Holder shall not have the right to exercise any portion of the Warrants under this Warrant Certificate, pursuant to Article 2 or otherwise, to the extent that after giving effect to exercise as set forth on the Warrant Exercise Subscription Form attached to the Warrant Certificate (the “Exercise Agreement”), the Holder (together with the Holder’s Affiliates, and any other persons acting as a group together with the Holder or any of the Holder’s Affiliates (such persons, “Attribution Parties”)), would beneficially own in excess of the Beneficial Ownership Limitation (as defined below). For purposes of the foregoing sentence, the number of equity securities of a Class Ceneficially owned by the Holder and its Affiliates and Attribution Parties shall include the number of equity securities of that class issuable upon conversion of the Class C Earnout Shares issuable upon exercise of the Warrants (or, following a conversion contemplated by Section 2.6, equity securities of that class issuable directly upon exercise of the Warrants) under this Warrant Certificate with respect to which such determination is being made, but shall exclude the number of equity securities of that class which would be issuable in connection with (i) exercise of the remaining, non-exercised portion of the Warrants under this Warrant Certificate beneficially owned by the Holder or any of its Affiliates or Attribution Parties and (ii) exercise or conversion of the unexercised or nonconverted portion of any other securities of the Company (including, without limitation, any other equivalents to the equity securities of that class) subject to a limitation on conversion or exercise analogous to the limitation contained herein beneficially owned by the Holder or any of its Affiliates or Attribution Parties. |
(b) | Except as set forth in the preceding paragraph (a), for purposes of this Schedule C, beneficial ownership shall be calculated in accordance with Section 13(d) of the U.S. Securities Exchange Act and the rules and regulations promulgated thereunder, it being acknowledged by the Holder that the Company is not representing to the Holder that such calculation is in compliance with Section 13(d) of the U.S. Securities Exchange Act and the Holder is solely responsible for any schedules required to be filed in accordance therewith. |
(c) | To the extent that the limitation contained in this Schedule C applies, the determination of whether and the extent the Warrants under this Warrant Certificate are exercisable (in relation to other securities owned by the Holder together with any Affiliates and Attribution Parties) shall be in the sole discretion of the Holder, and the submission of an Exercise Agreement shall be deemed to be the Holder’s determination of whether and the extent to which the Warrants under this Warrant Certificate are exercisable (in relation to other securities owned by the Holder together with any Affiliates and Attribution Parties), in each case subject to the Beneficial Ownership Limitation, and the Company shall have no obligation to verify or confirm the accuracy of such determination (including any determination as to group status pursuant to the next sentence). Each Exercise Agreement for a Warrant or a portion thereof shall include a written certification made in good faith by the Holder (on behalf of itself and its Attribution Parties and Joint Actors, as applicable) certifying that the proposed exercise complies with the applicable ownership limitations set forth herein. The Company may rely on such certification and shall have no obligation to verify the accuracy thereof, notably with respect to whether or not certain parties are Attribution Parties or Joint Actors of the Holder. In providing its certification, a Holder may rely on the information on |
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outstanding securities as reflected in (A) the Company’s most recent periodic or annual filed reports, (B) a more recent public announcement by the Company or (C) a more recent written notice by the Company or the transfer agent setting forth information on the outstanding securities. Upon the written or oral request of a Holder, the Company shall within one trading day confirm orally and in writing to the Holder the relevant information on outstanding securities of the Company. For clarity, (A) a determination as to any group status as contemplated above shall be determined in accordance with Section 13(d) of the U.S. Securities Exchange Act and the rules and regulations promulgated thereunder; and (B) the number of outstanding equity securities of a class shall be determined after giving effect to the conversion or exercise of securities of the Company, including the Warrants under this Warrant Certificate (to the extent converted or exercised, as permitted herein), by the Holder or its Affiliates or Attribution Parties since the date as of which such number of outstanding equity securities of that class was reported.
(d) | The “Beneficial Ownership Limitation” shall be 4.99% of the number of equity securities of that class outstanding immediately after giving effect to the issuance of equity securities of that class issuable upon conversion of the Class C Earnout Shares issuable upon exercise of the Warrants (or, following a conversion contemplated by Section 2.6, equity securities of that class issuable directly upon exercise of the Warrants) under this Warrant Certificate. The Holder, upon notice to the Company, may increase or decrease the Beneficial Ownership Limitation provisions of this Schedule C, provided that in no event shall the Beneficial Ownership Limitation exceed 9.99% of the number of the equity securities of a class outstanding immediately after giving effect to the issuance of equity securities of that class upon conversion of the Class C Earnout Shares issuable upon exercise of the Warrants (or, following a conversion contemplated by Section 2.6, equity securities of that class issuable directly upon exercise of the Warrants) under this Warrant Certificate held by the Holder, and the provisions of this Schedule C shall continue to apply. Any increase or decrease in the Beneficial Ownership Limitation will not be effective until the 61st day after such notice is delivered to the Company. The provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Schedule C to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the intended Beneficial Ownership Limitation herein contained or to make changes or supplements necessary or desirable to properly give effect to such limitation. The limitations contained in this Schedule C shall apply to a successor holder of this Warrant Certificate. |
For purposes of this Schedule C, “Affiliate” shall have the meaning ascribed to such term under the U.S. Securities Exchange Act, and the rules promulgated thereunder except that, solely for purposes of paragraph (e), “Affiliate” shall have the meaning ascribed to such term under applicable Canadian securities regulation.
(e) | Further, the Company shall not honour or permit any discretionary or mandatory exercise of any securities held by the Holder or any Affiliates or persons acting jointly or in concert with such persons (as determined in accordance with Canadian securities laws, together, the “Joint Actors”) into any equity securities of any class of the Company’s capital to the extent that after giving effect to such exercise, the Holder (together with any Joint Actors) would beneficially own, or have control or direction over, (i) in excess of 19.99% of the voting rights attached to all of the Company’s voting securities, or (ii) in excess of 9.99% of the outstanding securities of that class, in each case immediately after giving effect to such exercise on a partially diluted basis in accordance with Canadian securities laws. For purposes of the foregoing calculation, the securities beneficially owned, or over which control or direction is exercised, by the Holder and its Joint Actors shall include the equity securities issuable upon conversion of the Class C Earnout Shares issuable upon the proposed exercise of the portion of this Warrant Certificate or other Warrant then being exercised (or, following a conversion contemplated by Section 2.6, equity securities issuable directly upon exercise of the Warrants upon the proposed exercise of the portion of this Warrant Certificate or other Warrants then being exercised), and any other securities of the applicable class that the Holder or any Joint Actor has the right or obligation to acquire within sixty (60) days, but shall exclude any equity securities issuable in connection with the exercise of the remaining unexercised portion of this Warrant |
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Certificate or any other Warrants to the extent that such remaining portion is, by virtue of this paragraph, not exercisable within sixty (60) days because its exercise would cause the Holder, together with its Joint Actors, to exceed the applicable ownership limitation set forth above. For greater certainty, nothing in this paragraph shall prohibit the partial exercise of this Warrant Certificate or any other Warrants to the extent that, after giving effect to such partial exercise, the Holder, together with its Joint Actors, would not exceed the applicable ownership limitations set forth above. Any portion of this Warrant Certificate or any other Warrants that may not be exercised as a result of this paragraph shall not be deemed to be exercisable by the Holder within sixty (60) days for purposes of calculating the Holder’s beneficial ownership, or control or direction, under Canadian securities laws.
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Exhibit 4.19
THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFER SET FORTH IN A LOCK-UP LETTER AGREEMENT, EFFECTIVE AS OF JULY 10, 2026, AS AMENDED. A COPY OF SUCH LOCK-UP AGREEMENT WILL BE FURNISHED WITHOUT CHARGE BY THE COMPANY TO THE HOLDER HEREOF UPON WRITTEN REQUEST.
UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF MUST NOT TRADE THE SECURITY BEFORE THE DATE THE COMPANY BECAME A REPORTING ISSUER IN ANY PROVINCE OR TERRITORY OF CANADA.
THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “U.S. SECURITIES ACT”), OR UNDER ANY STATE SECURITIES LAWS. THE HOLDER HEREOF, BY PURCHASING SUCH SECURITIES, AGREES FOR THE BENEFIT OF GENERAL FUSION GROUP LTD. (THE “COMPANY”) THAT THE SECURITIES REPRESENTED HEREBY MAY BE OFFERED, SOLD OR OTHERWISE TRANSFERRED ONLY (A) TO THE COMPANY, (B) OUTSIDE THE UNITED STATES IN ACCORDANCE WITH RULE 904 OF REGULATION S UNDER THE U.S. SECURITIES ACT, (C) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT OR AN EXEMPTION FROM REGISTRATION UNDER THE U.S. SECURITIES ACT PROVIDED BY (I) RULE 144 UNDER THE U.S. SECURITIES ACT, IF AVAILABLE, OR (II) RULE 144A UNDER THE U.S. SECURITIES ACT, IF AVAILABLE, AND, IN EACH CASE, IN COMPLIANCE WITH APPLICABLE U.S. STATE SECURITIES LAWS, OR (D) PURSUANT TO ANOTHER EXEMPTION FROM REGISTRATION UNDER THE U.S. SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS; PROVIDED THAT IN THE CASE OF TRANSFERS PURSUANT TO (C)(I) OR (D) ABOVE, THE HOLDER OF THE SECURITIES HAS FURNISHED TO THE COMPANY AN OPINION OF COUNSEL OF RECOGNIZED STANDING IN FORM AND SUBSTANCE SATISFACTORY TO THE COMPANY.
WARRANTS TO PURCHASE
COMMON SHARES
OF GENERAL FUSION GROUP LTD.
(Organized under the laws of British Columbia)
Warrant Certificate No. 026-C-[●]
THIS IS TO CERTIFY THAT, for value received, WEIL, GOTSHAL & MANGES LLP (the “Holder”), is entitled to subscribe for and purchase up to [●] Common Shares (the “Subject Shares”) in the capital of GENERAL FUSION GROUP LTD. (the “Company”) on or before the Expiry Date, upon and subject to the further terms and conditions set forth in the Terms and Conditions attached hereto as Schedule “A” and incorporated by reference and deemed to be part hereof.
The Warrants may be exercised at the office of Company at 6020 Russ Baker Way, Richmond, BC V7B 1B4, Canada, Attention: Rob Crystal, Senior Vice President, Finance, or such other address as the Company may from time to time in writing direct (the “Exercise Location”).
Except as otherwise indicated, all capitalized terms used herein have the definitions set out in the Terms and Conditions attached hereto as Schedule “A”.
The Warrants, if unexercised, will expire after 4:00 p.m. on the Expiry Date.
IN WITNESS WHEREOF the Company has caused this Warrant Certificate to be executed by its duly authorized officer.
DATED: of September [●], 2026.
GENERAL FUSION GROUP LTD. | | |
| | |
Per: | | |
| Authorized Signatory | |
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Schedule “A”
WARRANT TERMS AND CONDITIONS
Terms and Conditions attached to the Warrant Certificate issued by General Fusion Group Ltd. to the Holder and dated [●], 2026.
Article 1- INTERPRETATION
1.1Definitions.In these Terms and Conditions, unless there is something in the subject matter or context inconsistent therewith,
(a) | “Business Day” means any day except a Saturday or Sunday and legal holidays for Canadian chartered banks in Vancouver, British Columbia; |
(b) | “Company” means General Fusion Group Ltd. until a successor company shall have become such in the manner prescribed in Article 5, and thereafter “Company” shall mean such successor company; |
(c) | “Expiry Date” means December 19, 2026; |
(d) | “Expiry Time” means 4:00pm (Vancouver Time) on the Expiry Date; |
(e) | “herein”, “hereby” and similar expressions refer to these Terms and Conditions as the same may be amended or modified from time to time; and the expression “Article” and “Section” followed by a number refer to the specified Article or Section of these Terms and Conditions; |
(f) | “Holder” means the Person identified as the Holder on the face page of the Warrant Certificate, or its nominee or its assignee; |
(g) | “Issue Date” means the date the Warrant Certificate was issued; |
(h) | “Person” means any individual, company, partnership, trustee, trust or unincorporated association, joint venture, syndicate, sole proprietorship, executor, administrator, or other legal representatives, regulatory body, or agency, government, governmental agency, authority or entity, however designated or constituted; |
(i) | “Plan of Arrangement” means the plan of arrangement under section 288 of the Business Corporations Act (British Columbia) resulting in the consummation of the business combination between Spring Valley Acquisition Corp. III, General Fusion Inc. and 1573562 B.C. Ltd. on July 10, 2026; |
(j) | “Shares” means Common shares in the capital of the Company, commonly referred to as subordinate voting shares; |
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(k) | “Subject Shares” means [●] Shares; |
(l) | “Warrants” means the share purchase warrants entitling the Holder to acquire the Subject Shares at any time prior to the Expiry Time, subject to such adjustments as are provided for in these Terms and Conditions, and “Warrant” means any one of them; |
(m) | “Warrant Certificate” means the certificate to which these Terms and Conditions are attached and all Schedules attached thereto; |
(n) | Words and phrases defined elsewhere herein or in the Warrant Certificate shall have the particular meanings so ascribed thereto; |
(o) | Words importing the singular number include the plural and vice versa and words importing the masculine gender include the feminine and neuter genders and words importing Persons in these Terms and Conditions shall include individuals, partnerships, corporations and any other entities, legal or otherwise; and |
1.2Applicable Law. The terms of this Warrant Certificate shall be construed exclusively in accordance with the laws of the Province of British Columbia and the laws of Canada applicable therein.
Article 2- EXERCISE OF WARRANTS
2.1Warrants Issued in Exchange for Original Warrants. This Warrant Certificate evidences Warrants issued in exchange for warrants to purchase common shares of General Fusion Inc. previously issued by General Fusion Inc. to the Holder (the “Original Warrants”) in connection with the Plan of Arrangement. In addition to these Warrants, and concurrently upon issuance of this Warrant Certificate, in exchange for the Original Warrants, the Holder shall receive warrants to purchase Class A Earnout shares of the capital of the Company, warrants to purchase Class B Earnout shares in the capital of the Company, and warrants to purchase Class C Earnout shares in the capital of the Company (together with these Warrants, the “Exchanged Warrants”).
2.2Exercise. The Holder’s right to subscribe for and purchase Shares under the Warrants may be exercised, at any time prior to the Expiry Time, by the Holder delivering a copy of the Warrant Certificate, along with a duly completed and executed subscription in the form attached hereto along with any other evidence required thereby, to the Company at the Exercise Location in accordance with the terms of this Warrant Certificate.
2.3Closing of Share Purchase. The closing (the “Closing”) of each subscription for Shares made hereunder as a result of the Holder exercising its Warrant rights shall take place on the third Business Day after the Warrant Certificate and completed subscription form are delivered to the Company at the Exercise Location, or such other time as the Company and the Holder mutually agree. At the Closing, Company shall, by 3:00 p.m. on the fifth Business Day after satisfaction of such delivery requirements, deliver or cause to be delivered to the Holder in book-entry form the Shares purchased and, to the extent less than the entire Warrants are exercised, a
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new warrant certificate in the same form as the Warrant Certificate in respect of the remainder of the Warrants.
2.4No Fractional Shares. The Company shall not be required to issue fractional Shares or other securities in satisfaction of its obligations hereunder. If any fractional interest in a Share or other security would, except for the provisions of this Section, be deliverable upon the exercise of Warrants, the Company shall instead issue the next lesser whole number of Shares or other securities.
Article 3- COVENANTS OF THE COMPANY
3.1Reservation of Shares. If and as long as the Articles of the Company shall limit the number of authorized Shares, it will reserve and keep available a sufficient number of Shares for the purpose of enabling it to satisfy its obligations to issue Shares upon the exercise of the Warrants.
3.2Fully Paid, Validly Issued Shares. The Company warrants that all Shares issued upon the exercise of the Warrants will be fully paid and non-assessable and duly and validly issued.
3.3Issue in Substitution for Lost Certificate. If the Warrant Certificate becomes mutilated, lost, destroyed or stolen, the Company shall issue and deliver a new Warrant Certificate of like date and tenor as the one mutilated, lost, destroyed or stolen, in exchange for and in place of and upon cancellation of such mutilated, lost, destroyed or stolen Warrant Certificate, at no cost to the Holder, upon the Holder delivering to the Company a statutory declaration of loss and indemnity in the form prescribed by the Company’s constating documents.
3.4Exchange of Certificates. The Holder may exchange a certificate or certificates representing Warrants for one or more new Warrant certificates representing the same aggregate number of Warrants, at no cost to the Holder.
Article 4- ADJUSTMENTS
4.1Adjustment of Subscription and Purchase Rights. From and after the Issue Date, the number of Shares covered by and deliverable upon the exercise of the Warrants will be subject to adjustment in the following events and in the following manner:
(a) | if and whenever at any time prior to the Expiry Date, the Company shall: |
(i) | subdivide, redivide or change its outstanding Shares into a greater number of Shares; or |
(ii) | reduce, combine or consolidate its outstanding Shares into a smaller number of Shares; |
(any of which is referred to as a “Capital Reorganization”) the number of Shares obtainable under each Warrant shall be adjusted immediately after the effective date of such Capital Reorganization, by multiplying the number of Shares theretofore obtainable on the exercise thereof by a fraction of which the numerator shall be the
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total number of Shares outstanding immediately after such date and the denominator shall be the total number of Shares outstanding immediately prior to such date. Such adjustment shall be made successively whenever any event referred to in this subsection shall occur;
(b) | if and whenever at any time prior to the Expiry Date, there is a reclassification of the Shares or a capital reorganization of the Company (other than as described in Section 4.1(a)) or a consolidation, amalgamation or merger of the Company with or into any other body corporate, trust, partnership or other entity, or a sale or conveyance of the property and assets of the Company as an entirety or substantially as an entirety to any other body corporate, trust, partnership or other entity, if the Holder has not exercised its right of acquisition, as to the effective date of such reclassification, capital reorganization, consolidation, amalgamation, merger, sale or conveyance, upon the exercise of such right thereafter, the Holder shall be entitled to receive and shall accept, in lieu of the number of Shares such Holder would otherwise be entitled to acquire, the number of shares or other securities or property of the Company or of the body corporate, trust, partnership or other entity resulting from such merger, amalgamation or consolidation, or to which such sale or conveyance may be made, as the case may be, that such Holder would have been entitled to receive on such reclassification, capital reorganization, consolidation, amalgamation, merger, sale or conveyance, if, on the record date or the effective date thereof, as the case may be, the Holder had been the registered holder of the number of Shares sought to be acquired by it; |
(c) | if and whenever at any time prior to the Expiry Date, the Company shall distribute to all holders of its Shares any shares of the Company (other than Shares) or evidences of its indebtedness or assets (excluding cash dividends or distributions paid from retained earnings or current year’s or prior year’s earnings of the Company) or rights or warrants to subscribe for or purchase any of its securities (excluding those referred to above) (any of the foregoing, including any right to subscribe for a security in a rights offering, being hereinafter in this subsection 4.1(c) called the “Securities”), then in each such case, the Company shall reserve shares, units or other entitlements of such Securities for distribution to the Holder upon exercise of this Warrant so that, in addition to the Shares to which such Holder is entitled, such Holder will receive upon such exercise the same amount and kind of such Securities which such Holder would have received if the Holder had, immediately prior to the record date for the distribution of the Securities, exercised this Warrant; and |
(d) | the adjustments provided for in this Warrant Certificate in the number of Shares and classes of securities which are to be received on the exercise of Warrants are cumulative. After any adjustment pursuant to this Section, the term “Shares” where used in this Warrant Certificate shall be interpreted to mean securities of any class or classes which, as a result of such adjustment and all prior adjustments pursuant to this Section, the Holder is entitled to receive upon the exercise of its Warrants, and the number of Shares indicated by any exercise made pursuant to a Warrant shall be interpreted to mean the number of Shares or other property or securities a |
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Holder is entitled to receive, as a result of such adjustment and all prior adjustments pursuant to this Section, upon the full exercise of a Warrant.
4.2Determination of Adjustments. The adjustments provided for in this Warrant Certificate are cumulative. The Company shall, promptly after each adjustment made hereunder, provide the Holder with a certificate providing the relevant facts and calculations with respect to. If any questions shall at any time arise with respect to any adjustments to be made hereunder, such question shall be conclusively determined by an independent firm of Chartered Accountants who shall have access to all appropriate records, and such determination shall be binding upon the Company and the Holder.
Article 5- MERGER AND SUCCESSORS
5.1Company May Consolidate, etc. on Certain Terms. Nothing herein contained shall prevent any amalgamation or merger of the Company with or into any other corporation or corporations, or a conveyance or transfer of all or substantially all the properties and estates of the Company as an entirety to any corporation lawfully entitled to acquire and operate same; provided however that the corporation formed by such amalgamation or merger or which acquires by conveyance or transfer all or substantially all the properties and estates of the Company as an entirety shall be a corporation organized and existing under the laws of Canada or of the United States of America, or any province, state, district or territory thereof, and shall, simultaneously with such amalgamation, merger, conveyance or transfer, assume the due and punctual performance and observance of all the covenants and conditions hereof to be performed or observed by the Company.
5.2Successor Company Substituted. In case the Company, pursuant to Section 5.1 shall be amalgamated or merged with or into any other corporation or corporations, or shall convey or transfer all or substantially all of its properties and estates as an entirety to any other corporation, the successor corporation formed by such consolidation or amalgamation, or into which the Company shall have been amalgamated or merged or which shall have received a conveyance or transfer as aforesaid, shall succeed to and be substituted for the Company hereunder. Such changes in phraseology and form (but not in substance) may be made in the Warrant Certificate and herein as may be appropriate in view of such amalgamation, merger or transfer.
Article 6- GENERAL
6.1Further Acts. Each of the Company and the Holder shall at the request of the Holder, and at the expense of the Company, execute and deliver any further documents and do all acts and
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things as the Holder may reasonably require in order to carry out the true intent and meaning of this Warrant Certificate.
6.2Enurement. This Warrant Certificate shall enure to the benefit of and be binding upon the Company and the Holder, and their respective successors and permitted assigns.
6.3Time. Time shall be of the essence herein.
6.4Notices. The Company may change the Exercise Location to another location in British Columbia from time to time upon providing at least 10 days’ notice to the Holder.
6.5Transfer. The Warrants may not be assigned or transferred by the Holder without the prior written consent of the Company, which consent shall not be unreasonably withheld.
6.6Entire Agreement. The Exchanged Warrants constitute all of the warrants to purchase shares of the Company issuable in exchange for the Original Warrants and replace and supersede the Original Warrants in its entirety.
6.7Signature and Electronic Copies. This Warrant Certificate may be signed by electronic signature, which shall be deemed to be an original and shall be deemed to have the same legal effect and validity as a certificate bearing an original signature. Notwithstanding anything herein, delivery of an executed copy of this Warrant Certificate by electronic transmission or other means of electronic communication capable of producing a printed copy will be deemed to be an original execution and delivery of this Warrant Certificate. If this Warrant Certificate bears an electronic signature as contemplated above and the Company delivers or causes to be delivered this Warrant Certificate by electronic transmission pursuant to this Section 6.7, then the Company represents to the Holder that the electronically transmitted warrant is the only executed copy to be issued to the Holder by the Company or on behalf of the Company.
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WARRANT EXERCISE SUBSCRIPTION FORM
TO:GENERAL FUSION GROUP LTD.(the “Company”)
The undersigned, being the Holder of the attached Warrant Certificate, hereby subscribes for Common shares of the Company upon and subject to the terms and conditions set forth in the Warrant Certificate. Payment shall be made in accordance with Section 2.2 of Schedule “A” to the Warrant Certificate.
The undersigned represents, warrants and certifies as follows (one (only) of the following must be checked):
| | (A) the undersigned Holder (i) did not acquire the Warrants within the United States and was not a U.S. Person at the time the Warrants were acquired, (ii) is not in the United States, (iii) is not a U.S. Person, (iv) is not exercising the Warrants on behalf of, or for the account or benefit of, a U.S. Person or a person in the United States, (v) did not execute or deliver this Exercise Subscription Form in the United States and (vi) delivery of the underlying Common shares will not be to an address in the United States; OR |
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| | (B) the undersigned Holder is the original purchaser from the Company, pursuant to Regulation D under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”), of the Warrants, and at the time of such acquisition was a U.S. Person or was in the United States (or was acting on behalf of, or for the account or benefit of, a U.S. Person or a person in the United States), and confirms, as of the date of hereof, each of the representations, warranties, certifications and agreements made by it in connection with its acquisition of such Warrants, including, without limitation, its status as an “accredited investor” within the meaning of Rule 501(a) of Regulation D under the U.S. Securities Act, as though such representations, warranties, certifications and agreements were made on the date hereof and in respect of the acquisition of the Common shares issuable upon exercise of the Warrants being exercised.; OR |
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| | (C) an exemption from the registration requirements of the U.S. Securities Act and all applicable state securities laws is available for the exercise of the Warrants, and attached hereto is a written opinion of U.S. counsel or other evidence in form and substance reasonably satisfactory to the Company to such effect. |
It is understood that the Company and any warrant agent may require evidence to verify the foregoing representations.
“United States” and “U.S. Person” have the meanings given to them in Regulation S under the U.S. Securities Act.
Notes:
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(1) | Certificates will not be registered or delivered to an address in the United States unless Box B or C above is checked and the applicable requirements are complied with. If B or C is checked, a U.S. legend shall be affixed to the Common shares for so long as required by applicable requirements of the U.S. Securities Act and applicable state securities laws. |
(2) | Subject to paragraph (1), if the Warrants have a U.S. legend describing transfer restrictions under the U.S. Securities Act affixed to them, the resulting Common Shares will have the same U.S. legend affixed to them for so long as required by applicable requirements of the U.S. Securities Act. |
(3) | If Box B or C above, as applicable, is checked, Holders are encouraged to consult with the Company and any warrant agent in advance to determine that the legal opinion tendered in connection with the exercise or legending matters will be satisfactory in form and substance to the Company and any warrant agent. |
DATED this day of , 20 .
Name, Address and Signature of the Holder: | |
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(Name) | |
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(Address) | |
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[●] | | |
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Per: | | |
| Authorized Signatory | |
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Exhibit 4.20
THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFER SET FORTH IN A LOCK-UP LETTER AGREEMENT, EFFECTIVE AS OF JULY 10, 2026, AS AMENDED. A COPY OF SUCH LOCK-UP AGREEMENT WILL BE FURNISHED WITHOUT CHARGE BY THE COMPANY TO THE HOLDER HEREOF UPON WRITTEN REQUEST.
UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF MUST NOT TRADE THE SECURITY BEFORE THE DATE THE COMPANY BECAME A REPORTING ISSUER IN ANY PROVINCE OR TERRITORY OF CANADA.
THE SECURITIES REPRESENTED HEREBY AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “U.S. SECURITIES ACT”), OR UNDER ANY STATE SECURITIES LAWS. THE HOLDER HEREOF, BY PURCHASING SUCH SECURITIES, AGREES FOR THE BENEFIT OF GENERAL FUSION GROUP LTD. (THE “COMPANY”) THAT THE SECURITIES REPRESENTED HEREBY MAY BE OFFERED, SOLD OR OTHERWISE TRANSFERRED ONLY (A) TO THE COMPANY, (B) OUTSIDE THE UNITED STATES IN ACCORDANCE WITH RULE 904 OF REGULATION S UNDER THE U.S. SECURITIES ACT, (C) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT OR AN EXEMPTION FROM REGISTRATION UNDER THE U.S. SECURITIES ACT PROVIDED BY (I) RULE 144 UNDER THE U.S. SECURITIES ACT, IF AVAILABLE, OR (II) RULE 144A UNDER THE U.S. SECURITIES ACT, IF AVAILABLE, AND, IN EACH CASE, IN COMPLIANCE WITH APPLICABLE U.S. STATE SECURITIES LAWS, OR (D) PURSUANT TO ANOTHER EXEMPTION FROM REGISTRATION UNDER THE U.S. SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS; PROVIDED THAT IN THE CASE OF TRANSFERS PURSUANT TO (C)(I) OR (D) ABOVE, THE HOLDER OF THE SECURITIES HAS FURNISHED TO THE COMPANY AN OPINION OF COUNSEL OF RECOGNIZED STANDING IN FORM AND SUBSTANCE SATISFACTORY TO THE COMPANY.
THESE WARRANTS MAY NOT BE EXERCISED BY OR ON BEHALF OF, OR FOR THE ACCOUNT OR BENEFIT OF, A PERSON IN THE UNITED STATES OR A U.S. PERSON UNLESS THE SHARES ISSUABLE UPON EXERCISE OF THESE WARRANTS HAVE BEEN REGISTERED UNDER THE U.S. SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS, OR AN EXEMPTION FROM SUCH REGISTRATION REQUIREMENTS IS AVAILABLE. “UNITED STATES” AND “U.S. PERSON” ARE AS DEFINED BY REGULATION S UNDER THE U.S. SECURITIES ACT.
WARRANTS TO PURCHASE
CLASS A EARNOUT SHARES
OF GENERAL FUSION GROUP LTD.
(Organized under the laws of British Columbia)
Warrant Certificate No. 026-EA-[●]
THIS IS TO CERTIFY THAT, for value received, WEIL, GOTSHAL & MANGES LLP (the “Holder”), is entitled to subscribe for and purchase up to [●] Class A Earnout Shares (the “Subject Shares”) in the capital of GENERAL FUSION GROUP LTD. (the “Company”) at a price per share equal to the Exercise Price on or before the Expiry Date, upon and subject to the further terms and conditions set forth in the Terms and Conditions attached hereto as Schedule “A” and incorporated by reference and deemed to be part hereof.
The Warrants may be exercised at the office of Company at 6020 Russ Baker Way, Richmond, BC V7B 1B4, Canada, Attention: Rob Crystal, Senior Vice President, Finance, or such other address as the Company may from time to time in writing direct (the “Exercise Location”).
Except as otherwise indicated, all capitalized terms used herein have the definitions set out in the Terms and Conditions attached hereto as Schedule “A”.
The Warrants, if unexercised, will expire after 4:00 p.m. on the Expiry Date.
IN WITNESS WHEREOF the Company has caused this Warrant Certificate to be executed by its duly authorized officer.
DATED: of September [●], 2026.
GENERAL FUSION GROUP LTD. | | |
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Per: | | |
| Authorized Signatory | |
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2
Schedule “A”
WARRANT TERMS AND CONDITIONS
Terms and Conditions attached to the Warrant Certificate issued by General Fusion Group Ltd. to the Holder and dated [●], 2026.
Article 1- INTERPRETATION
1.1Definitions.In these Terms and Conditions, unless there is something in the subject matter or context inconsistent therewith,
(a) | “Business Day” means any day except a Saturday or Sunday and legal holidays for Canadian chartered banks in Vancouver, British Columbia; |
(b) | “Class A Earnout Shares” means Class A Earnout shares in the capital of the Company; |
(c) | “Common Shares” means Common shares in the capital of the Company (commonly referred to as subordinate voting shares); |
(d) | “Company” means General Fusion Group Ltd. until a successor company shall have become such in the manner prescribed in Article 5, and thereafter “Company” shall mean such successor company; |
(e) | “Exercise Price” means US$0.01 per Subject Share; |
(f) | “Expiry Date” means December 19, 2026; |
(g) | “Expiry Time” means 4:00pm (Vancouver Time) on the Expiry Date; |
(h) | “herein”, “hereby” and similar expressions refer to these Terms and Conditions as the same may be amended or modified from time to time; and the expression “Article” and “Section” followed by a number refer to the specified Article or Section of these Terms and Conditions; |
(i) | “Holder” means the Person identified as the Holder on the face page of the Warrant Certificate, or its nominee or its assignee; |
(j) | “Issue Date” means the date the Warrant Certificate was issued; |
(k) | “Person” means any individual, company, partnership, trustee, trust or unincorporated association, joint venture, syndicate, sole proprietorship, executor, administrator, or other legal representatives, regulatory body, or agency, government, governmental agency, authority or entity, however designated or constituted; |
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(l) | “Plan of Arrangement” means the plan of arrangement under section 288 of the Business Corporations Act (British Columbia) resulting in the consummation of the business combination between Spring Valley Acquisition Corp. III, General Fusion Inc. and 1573562 B.C. Ltd. on July 10, 2026; |
(m) | “Subject Shares” means [●] Class A Earnout Shares; |
(n) | “Warrants” means the share purchase warrants entitling the Holder to acquire the Subject Shares at the Exercise Price per share at any time prior to the Expiry Time, subject to such adjustments as are provided for in these Terms and Conditions, and “Warrant” means any one of them; |
(o) | “Warrant Certificate” means the certificate to which these Terms and Conditions are attached and all Schedules attached thereto; |
(p) | Words and phrases defined elsewhere herein or in the Warrant Certificate shall have the particular meanings so ascribed thereto; |
(q) | Words importing the singular number include the plural and vice versa and words importing the masculine gender include the feminine and neuter genders and words importing Persons in these Terms and Conditions shall include individuals, partnerships, corporations and any other entities, legal or otherwise; and |
1.2Applicable Law. The terms of this Warrant Certificate shall be construed exclusively in accordance with the laws of the Province of British Columbia and the laws of Canada applicable therein.
Article 2- EXERCISE OF WARRANTS
2.1Warrants Issued in Exchange for Original Warrants. This Warrant Certificate evidences Warrants issued in exchange for warrants to purchase common shares of General Fusion Inc. previously issued by General Fusion Inc. to the Holder (the “Original Warrants”) in connection with the Plan of Arrangement. In addition to these Warrants, and concurrently upon issuance of this Warrant Certificate, in exchange for the Original Warrants, the Holder shall receive warrants to purchase Common Shares (the “Common Warrants”) warrants to purchase Class B Earnout shares in the capital of the Company, and warrants to purchase Class C Earnout shares in the capital of the Company (together with these Warrants and the Common Warrants, the “Exchanged Warrants”).
2.2Exercise. The Holder’s right to subscribe for and purchase Class A Earnout Shares under the Warrants may be exercised, at any time prior to the Expiry Time, by the Holder delivering a copy of the Warrant Certificate, along with a duly completed and executed subscription in the form attached hereto along with any other evidence required thereby, to the Company at the Exercise Location in accordance with the terms of this Warrant Certificate.
2.3Closing of Share Purchase. The closing (the “Closing”) of each subscription for Class A Earnout Shares made hereunder as a result of the Holder exercising its Warrant rights shall take place on the third Business Day after the Warrant Certificate, completed subscription form and
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payment of the applicable Exercise Price are delivered to the Company at the Exercise Location, or such other time as the Company and the Holder mutually agree. At the Closing, the Company shall, by 3:00 p.m. on the fifth Business Day after satisfaction of such delivery requirements, deliver or cause to be delivered to the Holder in book-entry form the Class A Earnout Shares purchased and, to the extent less than the entire Warrants are exercised, a new warrant certificate in the same form as the Warrant Certificate in respect of the remainder of the Warrants.
2.4No Fractional Shares. The Company shall not be required to issue fractional Class A Earnout Shares or other securities in satisfaction of its obligations hereunder. If any fractional interest in a Class A Earnout Share or other security would, except for the provisions of this Section, be deliverable upon the exercise of Warrants, the Company shall instead issue the next lesser whole number of Class A Earnout Shares or other securities.
Article 3- COVENANTS OF THE COMPANY
3.1Reservation of Shares. If and as long as the Articles of the Company shall limit the number of authorized Class A Earnout Shares, it will reserve and keep available a sufficient number of Class A Earnout Shares for the purpose of enabling it to satisfy its obligations to issue Class A Earnout Shares upon the exercise of the Warrants.
3.2Fully Paid, Validly Issued Shares. The Company warrants that all Class A Earnout Shares issued upon the exercise of the Warrants will be fully paid and non-assessable and duly and validly issued.
3.3Issue in Substitution for Lost Certificate. If the Warrant Certificate becomes mutilated, lost, destroyed or stolen, the Company shall issue and deliver a new Warrant Certificate of like date and tenor as the one mutilated, lost, destroyed or stolen, in exchange for and in place of and upon cancellation of such mutilated, lost, destroyed or stolen Warrant Certificate, at no cost to the Holder, upon the Holder delivering to the Company a statutory declaration of loss and indemnity in the form prescribed by the Company’s constating documents.
3.4Exchange of Certificates. The Holder may exchange a certificate or certificates representing Warrants for one or more new Warrant certificates representing the same aggregate number of Warrants, at no cost to the Holder.
Article 4- ADJUSTMENTS
4.1Adjustment of Subscription and Purchase Rights. From and after the Issue Date, the the number of Class A Earnout Shares covered by and deliverable upon the exercise of the Warrants will be subject to adjustment in the following events and in the following manner:
(a) | if and whenever at any time prior to the Expiry Date, the Company shall: |
(i) | subdivide, redivide or change its outstanding Class A Earnout Shares into a greater number of Class A Earnout Shares; or |
(ii) | reduce, combine or consolidate its outstanding Class A Earnout Shares into a smaller number of Class A Earnout Shares; |
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(any of which is referred to as a “Capital Reorganization”) the number of Class A Earnout Shares obtainable under each Warrant (the “Adjusted Shares”) shall be adjusted immediately after the effective date of such Capital Reorganization, by multiplying the number of Class A Earnout Shares theretofore obtainable on the exercise thereof by a fraction of which the numerator shall be the total number of Class A Earnout Shares outstanding immediately after such date and the denominator shall be the total number of Class A Earnout Shares outstanding immediately prior to such date. Such adjustment shall be made successively whenever any event referred to in this subsection shall occur;
(b) | if and whenever at any time prior to the Expiry Date, there is a reclassification of the Class A Earnout Shares or a capital reorganization of the Company (other than as described in Section 4.1(a)) or a consolidation, amalgamation or merger of the Company with or into any other body corporate, trust, partnership or other entity, or a sale or conveyance of the property and assets of the Company as an entirety or substantially as an entirety to any other body corporate, trust, partnership or other entity, if the Holder has not exercised its right of acquisition, as to the effective date of such reclassification, capital reorganization, consolidation, amalgamation, merger, sale or conveyance, upon the exercise of such right thereafter, the Holder shall be entitled to receive and shall accept, in lieu of the number of Class A Earnout Shares such Holder would otherwise be entitled to acquire, the number of shares or other securities or property of the Company or of the body corporate, trust, partnership or other entity resulting from such merger, amalgamation or consolidation, or to which such sale or conveyance may be made, as the case may be, that such Holder would have been entitled to receive on such reclassification, capital reorganization, consolidation, amalgamation, merger, sale or conveyance, if, on the record date or the effective date thereof, as the case may be, the Holder had been the registered holder of the number of Class A Earnout Shares sought to be acquired by it; |
(c) | if and whenever at any time prior to the Expiry Date, the Company shall distribute to all holders of its Class A Earnout Shares any shares of the Company or evidences of its indebtedness or assets (excluding cash dividends or distributions paid from retained earnings or current year’s or prior year’s earnings of the Company) or rights or warrants to subscribe for or purchase any of its securities (excluding those referred to above) (any of the foregoing, including any right to subscribe for a security in a rights offering, being hereinafter in this subsection 4.1(c) called the “Securities”), then in each such case, the Company shall reserve shares, units or other entitlements of such Securities for distribution to the Holder upon exercise of this Warrant so that, in addition to the Class A Earnout Shares to which such Holder is entitled, such Holder will receive upon such exercise the same amount and kind of such Securities which such Holder would have received if the Holder had, immediately prior to the record date for the distribution of the Securities, exercised this Warrant; and |
(d) | the adjustments provided for in this Warrant Certificate in the number of Class A Earnout Shares and classes of securities which are to be received on the exercise of |
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Warrants are cumulative. After any adjustment pursuant to this Section, the term “Class A Earnout Shares” where used in this Warrant Certificate shall be interpreted to mean securities of any class or classes which, as a result of such adjustment and all prior adjustments pursuant to this Section, the Holder is entitled to receive upon the exercise of its Warrants, and the number of Class A Earnout Shares indicated by any exercise made pursuant to a Warrant shall be interpreted to mean the number of Class A Earnout Shares or other property or securities a Holder is entitled to receive, as a result of such adjustment and all prior adjustments pursuant to this Section, upon the full exercise of a Warrant.
4.2Determination of Adjustments. The adjustments provided for in this Warrant Certificate are cumulative. The Company shall, promptly after each adjustment made hereunder, provide the Holder with a certificate providing the relevant facts and calculations with respect to. If any questions shall at any time arise with respect to any adjustments to be made hereunder, such question shall be conclusively determined by an independent firm of Chartered Accountants who shall have access to all appropriate records, and such determination shall be binding upon the Company and the Holder.
Article 5- MERGER AND SUCCESSORS
5.1Company May Consolidate, etc. on Certain Terms. Nothing herein contained shall prevent any amalgamation or merger of the Company with or into any other corporation or corporations, or a conveyance or transfer of all or substantially all the properties and estates of the Company as an entirety to any corporation lawfully entitled to acquire and operate same; provided however that the corporation formed by such amalgamation or merger or which acquires by conveyance or transfer all or substantially all the properties and estates of the Company as an entirety shall be a corporation organized and existing under the laws of Canada or of the United States of America, or any province, state, district or territory thereof, and shall, simultaneously with such amalgamation, merger, conveyance or transfer, assume the due and punctual performance and observance of all the covenants and conditions hereof to be performed or observed by the Company.
5.2Successor Company Substituted. In case the Company, pursuant to Section 5.1 shall be amalgamated or merged with or into any other corporation or corporations, or shall convey or transfer all or substantially all of its properties and estates as an entirety to any other corporation, the successor corporation formed by such consolidation or amalgamation, or into which the Company shall have been amalgamated or merged or which shall have received a conveyance or transfer as aforesaid, shall succeed to and be substituted for the Company hereunder. Such changes in phraseology and form (but not in substance) may be made in the Warrant Certificate and herein as may be appropriate in view of such amalgamation, merger or transfer.
Article 6- GENERAL
6.1Further Acts. Each of the Company and the Holder shall at the request of the Holder, and at the expense of the Company, execute and deliver any further documents and do all acts and
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things as the Holder may reasonably require in order to carry out the true intent and meaning of this Warrant Certificate.
6.2Enurement. This Warrant Certificate shall enure to the benefit of and be binding upon the Company and the Holder, and their respective successors and permitted assigns.
6.3Time. Time shall be of the essence herein.
6.4Notices. The Company may change the Exercise Location to another location in British Columbia from time to time upon providing at least 10 days’ notice to the Holder.
6.5Transfer. The Warrants may not be assigned or transferred by the Holder without the prior written consent of the Company, which consent shall not be unreasonably withheld.
6.6Entire Agreement. The Exchanged Warrants constitute all of the warrants to purchase shares of the Company issuable in exchange for the Original Warrants and replace and supersede the Original Warrants in its entirety.
6.7Signature and Electronic Copies. This Warrant Certificate may be signed by electronic signature, which shall be deemed to be an original and shall be deemed to have the same legal effect and validity as a certificate bearing an original signature. Notwithstanding anything herein, delivery of an executed copy of this Warrant Certificate by electronic transmission or other means of electronic communication capable of producing a printed copy will be deemed to be an original execution and delivery of this Warrant Certificate. If this Warrant Certificate bears an electronic signature as contemplated above and the Company delivers or causes to be delivered this Warrant Certificate by electronic transmission pursuant to this Section 6.7, then the Company represents to the Holder that the electronically transmitted warrant is the only executed copy to be issued to the Holder by the Company or on behalf of the Company.
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WARRANT EXERCISE SUBSCRIPTION FORM
TO:GENERAL FUSION GROUP LTD.(the “Company”)
The undersigned, being the Holder of the attached Warrant Certificate, hereby subscribes for _______________ Class A Earnout shares of the Company upon and subject to the terms and conditions set forth in the Warrant Certificate and tenders payment of the aggregate Exercise Price (US$0.01) for such shares as follows:
☐ | certified cheque, bank draft or solicitors trust cheque in the amount of US$________ payable to order of the Warrant Administrator, for the Company, enclosed herewith; |
☐ | Wire transfer of immediately available funds to the Warrant Administrator’s account, for the Company; or |
☐ | Other [Describe] __________________________________________ |
Payment, if any, shall be made in accordance with Section 2.3 of Schedule “A” to the Warrant Certificate.
The undersigned represents, warrants and certifies as follows (one (only) of the following must be checked):
| | (A) the undersigned Holder (i) did not acquire the Warrants within the United States and was not a U.S. Person at the time the Warrants were acquired, (ii) is not in the United States, (iii) is not a U.S. Person, (iv) is not exercising the Warrants on behalf of, or for the account or benefit of, a U.S. Person or a person in the United States, (v) did not execute or deliver this Exercise Subscription Form in the United States and (vi) delivery of the underlying Class A Earnout shares will not be to an address in the United States; OR |
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| | (B) the undersigned Holder is the original purchaser from the Company, pursuant to Regulation D under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”), of the Warrants, and at the time of such acquisition was a U.S. Person or was in the United States (or was acting on behalf of, or for the account or benefit of, a U.S. Person or a person in the United States), and confirms, as of the date of hereof, each of the representations, warranties, certifications and agreements made by it in connection with its acquisition of such Warrants, including, without limitation, its status as an “accredited investor” within the meaning of Rule 501(a) of Regulation D under the U.S. Securities Act, as though such representations, warranties, certifications and agreements were made on the date hereof and in respect of the acquisition of the Class A Earnout shares issuable upon exercise of the Warrants being exercised.; OR |
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| | (C) an exemption from the registration requirements of the U.S. Securities Act and all applicable state securities laws is available for the exercise of the Warrants, and attached hereto is a written opinion of U.S. counsel or other evidence in form and substance reasonably satisfactory to the Company to such effect. |
It is understood that the Company and any warrant agent may require evidence to verify the foregoing representations.
“United States” and “U.S. Person” have the meanings given to them in Regulation S under the U.S. Securities Act.
Notes:
(1) | Certificates will not be registered or delivered to an address in the United States unless Box B or C above is checked and the applicable requirements are complied with. If B or C is checked, a U.S. legend shall be affixed to the Class A Earnout shares for so long as required by applicable requirements of the U.S. Securities Act and applicable state securities laws. |
(2) | Subject to paragraph (1), if the Warrants have a U.S. legend describing transfer restrictions under the U.S. Securities Act affixed to them, the resulting Class A Earnout Shares will have the same U.S. legend affixed to them for so long as required by applicable requirements of the U.S. Securities Act. |
(3) | If Box B or C above, as applicable, is checked, Holders are encouraged to consult with the Company and any warrant agent in advance to determine that the legal opinion tendered in connection with the exercise or legending matters will be satisfactory in form and substance to the Company and any warrant agent. |
DATED this ________ day of ____________, 20______.
Name, Address and Signature of the Holder: | |
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(Name) | |
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(Address) | |
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[●] | | |
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Per: | | |
| Authorized Signatory | |
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Exhibit 4.21
THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFER SET FORTH IN A LOCK-UP LETTER AGREEMENT, EFFECTIVE AS OF JULY 10, 2026, AS AMENDED. A COPY OF SUCH LOCK-UP AGREEMENT WILL BE FURNISHED WITHOUT CHARGE BY THE COMPANY TO THE HOLDER HEREOF UPON WRITTEN REQUEST.
UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF MUST NOT TRADE THE SECURITY BEFORE THE DATE THE COMPANY BECAME A REPORTING ISSUER IN ANY PROVINCE OR TERRITORY OF CANADA.
THE SECURITIES REPRESENTED HEREBY AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “U.S. SECURITIES ACT”), OR UNDER ANY STATE SECURITIES LAWS. THE HOLDER HEREOF, BY PURCHASING SUCH SECURITIES, AGREES FOR THE BENEFIT OF GENERAL FUSION GROUP LTD. (THE “COMPANY”) THAT THE SECURITIES REPRESENTED HEREBY MAY BE OFFERED, SOLD OR OTHERWISE TRANSFERRED ONLY (A) TO THE COMPANY, (B) OUTSIDE THE UNITED STATES IN ACCORDANCE WITH RULE 904 OF REGULATION S UNDER THE U.S. SECURITIES ACT, (C) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT OR AN EXEMPTION FROM REGISTRATION UNDER THE U.S. SECURITIES ACT PROVIDED BY (I) RULE 144 UNDER THE U.S. SECURITIES ACT, IF AVAILABLE, OR (II) RULE 144A UNDER THE U.S. SECURITIES ACT, IF AVAILABLE, AND, IN EACH CASE, IN COMPLIANCE WITH APPLICABLE U.S. STATE SECURITIES LAWS, OR (D) PURSUANT TO ANOTHER EXEMPTION FROM REGISTRATION UNDER THE U.S. SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS; PROVIDED THAT IN THE CASE OF TRANSFERS PURSUANT TO (C)(I) OR (D) ABOVE, THE HOLDER OF THE SECURITIES HAS FURNISHED TO THE COMPANY AN OPINION OF COUNSEL OF RECOGNIZED STANDING IN FORM AND SUBSTANCE SATISFACTORY TO THE COMPANY.
THESE WARRANTS MAY NOT BE EXERCISED BY OR ON BEHALF OF, OR FOR THE ACCOUNT OR BENEFIT OF, A PERSON IN THE UNITED STATES OR A U.S. PERSON UNLESS THE SHARES ISSUABLE UPON EXERCISE OF THESE WARRANTS HAVE BEEN REGISTERED UNDER THE U.S. SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS, OR AN EXEMPTION FROM SUCH REGISTRATION REQUIREMENTS IS AVAILABLE. “UNITED STATES” AND “U.S. PERSON” ARE AS DEFINED BY REGULATION S UNDER THE U.S. SECURITIES ACT.
WARRANTS TO PURCHASE
CLASS B EARNOUT SHARES
OF GENERAL FUSION GROUP LTD.
(Organized under the laws of British Columbia)
Warrant Certificate No. 026-EB-[●]
THIS IS TO CERTIFY THAT, for value received, WEIL, GOTSHAL & MANGES LLP (the “Holder”), is entitled to subscribe for and purchase up to [●] Class B Earnout Shares (the “Subject Shares”) in the capital of GENERAL FUSION GROUP LTD. (the “Company”) at a price per share equal to the Exercise Price on or before the Expiry Date, upon and subject to the further terms and conditions set forth in the Terms and Conditions attached hereto as Schedule “A” and incorporated by reference and deemed to be part hereof.
The Warrants may be exercised at the office of Company at 6020 Russ Baker Way, Richmond, BC V7B 1B4, Canada, Attention: Rob Crystal, Senior Vice President, Finance, or such other address as the Company may from time to time in writing direct (the “Exercise Location”).
Except as otherwise indicated, all capitalized terms used herein have the definitions set out in the Terms and Conditions attached hereto as Schedule “A”.
The Warrants, if unexercised, will expire after 4:00 p.m. on the Expiry Date.
IN WITNESS WHEREOF the Company has caused this Warrant Certificate to be executed by its duly authorized officer.
DATED: of September [●], 2026. | | |
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GENERAL FUSION GROUP LTD. | | |
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Per: | | |
| Authorized Signatory | |
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Schedule “A”
WARRANT TERMS AND CONDITIONS
Terms and Conditions attached to the Warrant Certificate issued by General Fusion Group Ltd. to the Holder and dated [●], 2026.
Article 1- INTERPRETATION
1.1Definitions.In these Terms and Conditions, unless there is something in the subject matter or context inconsistent therewith,
(a) | “Business Day” means any day except a Saturday or Sunday and legal holidays for Canadian chartered banks in Vancouver, British Columbia; |
(b) | “Class B Earnout Shares” means Class B Earnout shares in the capital of the Company; |
(c) | “Common Shares” means Common shares in the capital of the Company (commonly referred to as subordinate voting shares); |
(d) | “Company” means General Fusion Group Ltd. until a successor company shall have become such in the manner prescribed in Article 5, and thereafter “Company” shall mean such successor company; |
(e) | “Exercise Price” means US$0.01 per Subject Share; |
(f) | “Expiry Date” means December 19, 2026; |
(g) | “Expiry Time” means 4:00pm (Vancouver Time) on the Expiry Date; |
(h) | “herein”, “hereby” and similar expressions refer to these Terms and Conditions as the same may be amended or modified from time to time; and the expression “Article” and “Section” followed by a number refer to the specified Article or Section of these Terms and Conditions; |
(i) | “Holder” means the Person identified as the Holder on the face page of the Warrant Certificate, or its nominee or its assignee; |
(j) | “Issue Date” means the date the Warrant Certificate was issued; |
(k) | “Person” means any individual, company, partnership, trustee, trust or unincorporated association, joint venture, syndicate, sole proprietorship, executor, administrator, or other legal representatives, regulatory body, or agency, government, governmental agency, authority or entity, however designated or constituted; |
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(l) | “Plan of Arrangement” means the plan of arrangement under section 288 of the Business Corporations Act (British Columbia) resulting in the consummation of the business combination between Spring Valley Acquisition Corp. III, General Fusion Inc. and 1573562 B.C. Ltd. on July 10, 2026; |
(m) | “Subject Shares” means [●] Class B Earnout Shares; |
(n) | “Warrants” means the share purchase warrants entitling the Holder to acquire the Subject Shares at the Exercise Price per share at any time prior to the Expiry Time, subject to such adjustments as are provided for in these Terms and Conditions, and “Warrant” means any one of them; |
(o) | “Warrant Certificate” means the certificate to which these Terms and Conditions are attached and all Schedules attached thereto; |
(p) | Words and phrases defined elsewhere herein or in the Warrant Certificate shall have the particular meanings so ascribed thereto; |
(q) | Words importing the singular number include the plural and vice versa and words importing the masculine gender include the feminine and neuter genders and words importing Persons in these Terms and Conditions shall include individuals, partnerships, corporations and any other entities, legal or otherwise; and |
1.2Applicable Law. The terms of this Warrant Certificate shall be construed exclusively in accordance with the laws of the Province of British Columbia and the laws of Canada applicable therein.
Article 2- EXERCISE OF WARRANTS
2.1Warrants Issued in Exchange for Original Warrants. This Warrant Certificate evidences Warrants issued in exchange for warrants to purchase common shares of General Fusion Inc. previously issued by General Fusion Inc. to the Holder (the “Original Warrants”) in connection with the Plan of Arrangement. In addition to these Warrants, and concurrently upon issuance of this Warrant Certificate, in exchange for the Original Warrants, the Holder shall receive warrants to purchase Common Shares (the “Common Warrants”) warrants to purchase Class A Earnout shares in the capital of the Company, and warrants to purchase Class C Earnout shares in the capital of the Company (together with these Warrants and the Common Warrants, the “Exchanged Warrants”).
2.2Exercise. The Holder’s right to subscribe for and purchase Class B Earnout Shares under the Warrants may be exercised, at any time prior to the Expiry Time, by the Holder delivering a copy of the Warrant Certificate, along with a duly completed and executed subscription in the form attached hereto along with any other evidence required thereby, to the Company at the Exercise Location in accordance with the terms of this Warrant Certificate.
2.3Closing of Share Purchase. The closing (the “Closing”) of each subscription for Class B Earnout Shares made hereunder as a result of the Holder exercising its Warrant rights shall take place on the third Business Day after the Warrant Certificate, completed subscription form and
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payment of the applicable Exercise Price are delivered to the Company at the Exercise Location, or such other time as the Company and the Holder mutually agree. At the Closing, the Company shall, by 3:00 p.m. on the fifth Business Day after satisfaction of such delivery requirements, deliver or cause to be delivered to the Holder in book-entry form the Class B Earnout Shares purchased and, to the extent less than the entire Warrants are exercised, a new warrant certificate in the same form as the Warrant Certificate in respect of the remainder of the Warrants.
2.4No Fractional Shares. The Company shall not be required to issue fractional Class B Earnout Shares or other securities in satisfaction of its obligations hereunder. If any fractional interest in a Class B Earnout Share or other security would, except for the provisions of this Section, be deliverable upon the exercise of Warrants, the Company shall instead issue the next lesser whole number of Class B Earnout Shares or other securities.
Article 3- COVENANTS OF THE COMPANY
3.1Reservation of Shares. If and as long as the Articles of the Company shall limit the number of authorized Class B Earnout Shares, it will reserve and keep available a sufficient number of Class B Earnout Shares for the purpose of enabling it to satisfy its obligations to issue Class B Earnout Shares upon the exercise of the Warrants.
3.2Fully Paid, Validly Issued Shares. The Company warrants that all Class B Earnout Shares issued upon the exercise of the Warrants will be fully paid and non-assessable and duly and validly issued.
3.3Issue in Substitution for Lost Certificate. If the Warrant Certificate becomes mutilated, lost, destroyed or stolen, the Company shall issue and deliver a new Warrant Certificate of like date and tenor as the one mutilated, lost, destroyed or stolen, in exchange for and in place of and upon cancellation of such mutilated, lost, destroyed or stolen Warrant Certificate, at no cost to the Holder, upon the Holder delivering to the Company a statutory declaration of loss and indemnity in the form prescribed by the Company’s constating documents.
3.4Exchange of Certificates. The Holder may exchange a certificate or certificates representing Warrants for one or more new Warrant certificates representing the same aggregate number of Warrants, at no cost to the Holder.
Article 4- ADJUSTMENTS
4.1Adjustment of Subscription and Purchase Rights. From and after the Issue Date, the the number of Class B Earnout Shares covered by and deliverable upon the exercise of the Warrants will be subject to adjustment in the following events and in the following manner:
(a) | if and whenever at any time prior to the Expiry Date, the Company shall: |
(i) | subdivide, redivide or change its outstanding Class B Earnout Shares into a greater number of Class B Earnout Shares; or |
(ii) | reduce, combine or consolidate its outstanding Class B Earnout Shares into a smaller number of Class B Earnout Shares; |
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(any of which is referred to as a “Capital Reorganization”) the number of Class B Earnout Shares obtainable under each Warrant (the “Adjusted Shares”) shall be adjusted immediately after the effective date of such Capital Reorganization, by multiplying the number of Class B Earnout Shares theretofore obtainable on the exercise thereof by a fraction of which the numerator shall be the total number of Class B Earnout Shares outstanding immediately after such date and the denominator shall be the total number of Class B Earnout Shares outstanding immediately prior to such date. Such adjustment shall be made successively whenever any event referred to in this subsection shall occur;
(b) | if and whenever at any time prior to the Expiry Date, there is a reclassification of the Class B Earnout Shares or a capital reorganization of the Company (other than as described in Section 4.1(a)) or a consolidation, amalgamation or merger of the Company with or into any other body corporate, trust, partnership or other entity, or a sale or conveyance of the property and assets of the Company as an entirety or substantially as an entirety to any other body corporate, trust, partnership or other entity, if the Holder has not exercised its right of acquisition, as to the effective date of such reclassification, capital reorganization, consolidation, amalgamation, merger, sale or conveyance, upon the exercise of such right thereafter, the Holder shall be entitled to receive and shall accept, in lieu of the number of Class B Earnout Shares such Holder would otherwise be entitled to acquire, the number of shares or other securities or property of the Company or of the body corporate, trust, partnership or other entity resulting from such merger, amalgamation or consolidation, or to which such sale or conveyance may be made, as the case may be, that such Holder would have been entitled to receive on such reclassification, capital reorganization, consolidation, amalgamation, merger, sale or conveyance, if, on the record date or the effective date thereof, as the case may be, the Holder had been the registered holder of the number of Class B Earnout Shares sought to be acquired by it; |
(c) | if and whenever at any time prior to the Expiry Date, the Company shall distribute to all holders of its Class B Earnout Shares any shares of the Company or evidences of its indebtedness or assets (excluding cash dividends or distributions paid from retained earnings or current year’s or prior year’s earnings of the Company) or rights or warrants to subscribe for or purchase any of its securities (excluding those referred to above) (any of the foregoing, including any right to subscribe for a security in a rights offering, being hereinafter in this subsection 4.1(c) called the “Securities”), then in each such case, the Company shall reserve shares, units or other entitlements of such Securities for distribution to the Holder upon exercise of this Warrant so that, in addition to the Class B Earnout Shares to which such Holder is entitled, such Holder will receive upon such exercise the same amount and kind of such Securities which such Holder would have received if the Holder had, immediately prior to the record date for the distribution of the Securities, exercised this Warrant; and |
(d) | the adjustments provided for in this Warrant Certificate in the number of Class B Earnout Shares and classes of securities which are to be received on the exercise of |
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Warrants are cumulative. After any adjustment pursuant to this Section, the term “Class B Earnout Shares” where used in this Warrant Certificate shall be interpreted to mean securities of any class or classes which, as a result of such adjustment and all prior adjustments pursuant to this Section, the Holder is entitled to receive upon the exercise of its Warrants, and the number of Class B Earnout Shares indicated by any exercise made pursuant to a Warrant shall be interpreted to mean the number of Class B Earnout Shares or other property or securities a Holder is entitled to receive, as a result of such adjustment and all prior adjustments pursuant to this Section, upon the full exercise of a Warrant.
4.2Determination of Adjustments. The adjustments provided for in this Warrant Certificate are cumulative. The Company shall, promptly after each adjustment made hereunder, provide the Holder with a certificate providing the relevant facts and calculations with respect to. If any questions shall at any time arise with respect to any adjustments to be made hereunder, such question shall be conclusively determined by an independent firm of Chartered Accountants who shall have access to all appropriate records, and such determination shall be binding upon the Company and the Holder.
Article 5- MERGER AND SUCCESSORS
5.1Company May Consolidate, etc. on Certain Terms. Nothing herein contained shall prevent any amalgamation or merger of the Company with or into any other corporation or corporations, or a conveyance or transfer of all or substantially all the properties and estates of the Company as an entirety to any corporation lawfully entitled to acquire and operate same; provided however that the corporation formed by such amalgamation or merger or which acquires by conveyance or transfer all or substantially all the properties and estates of the Company as an entirety shall be a corporation organized and existing under the laws of Canada or of the United States of America, or any province, state, district or territory thereof, and shall, simultaneously with such amalgamation, merger, conveyance or transfer, assume the due and punctual performance and observance of all the covenants and conditions hereof to be performed or observed by the Company.
5.2Successor Company Substituted. In case the Company, pursuant to Section 5.1 shall be amalgamated or merged with or into any other corporation or corporations, or shall convey or transfer all or substantially all of its properties and estates as an entirety to any other corporation, the successor corporation formed by such consolidation or amalgamation, or into which the Company shall have been amalgamated or merged or which shall have received a conveyance or transfer as aforesaid, shall succeed to and be substituted for the Company hereunder. Such changes in phraseology and form (but not in substance) may be made in the Warrant Certificate and herein as may be appropriate in view of such amalgamation, merger or transfer.
Article 6- GENERAL
6.1Further Acts. Each of the Company and the Holder shall at the request of the Holder, and at the expense of the Company, execute and deliver any further documents and do all acts and
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things as the Holder may reasonably require in order to carry out the true intent and meaning of this Warrant Certificate.
6.2Enurement. This Warrant Certificate shall enure to the benefit of and be binding upon the Company and the Holder, and their respective successors and permitted assigns.
6.3Time. Time shall be of the essence herein.
6.4Notices. The Company may change the Exercise Location to another location in British Columbia from time to time upon providing at least 10 days’ notice to the Holder.
6.5Transfer. The Warrants may not be assigned or transferred by the Holder without the prior written consent of the Company, which consent shall not be unreasonably withheld.
6.6Entire Agreement. The Exchanged Warrants constitute all of the warrants to purchase shares of the Company issuable in exchange for the Original Warrants and replace and supersede the Original Warrants in its entirety.
6.7Signature and Electronic Copies. This Warrant Certificate may be signed by electronic signature, which shall be deemed to be an original and shall be deemed to have the same legal effect and validity as a certificate bearing an original signature. Notwithstanding anything herein, delivery of an executed copy of this Warrant Certificate by electronic transmission or other means of electronic communication capable of producing a printed copy will be deemed to be an original execution and delivery of this Warrant Certificate. If this Warrant Certificate bears an electronic signature as contemplated above and the Company delivers or causes to be delivered this Warrant Certificate by electronic transmission pursuant to this Section 6.7, then the Company represents to the Holder that the electronically transmitted warrant is the only executed copy to be issued to the Holder by the Company or on behalf of the Company.
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WARRANT EXERCISE SUBSCRIPTION FORM
TO:GENERAL FUSION GROUP LTD.(the “Company”)
The undersigned, being the Holder of the attached Warrant Certificate, hereby subscribes for _______________ Class B Earnout shares of the Company upon and subject to the terms and conditions set forth in the Warrant Certificate and tenders payment of the aggregate Exercise Price (US$0.01) for such shares as follows:
☐ | certified cheque, bank draft or solicitors trust cheque in the amount of US$________ payable to order of the Warrant Administrator, for the Company, enclosed herewith; |
☐ | Wire transfer of immediately available funds to the Warrant Administrator’s account, for the Company; or |
☐ | Other [Describe] __________________________________________ |
Payment, if any, shall be made in accordance with Section 2.3 of Schedule “A” to the Warrant Certificate.
The undersigned represents, warrants and certifies as follows (one (only) of the following must be checked):
| | (A) the undersigned Holder (i) did not acquire the Warrants within the United States and was not a U.S. Person at the time the Warrants were acquired, (ii) is not in the United States, (iii) is not a U.S. Person, (iv) is not exercising the Warrants on behalf of, or for the account or benefit of, a U.S. Person or a person in the United States, (v) did not execute or deliver this Exercise Subscription Form in the United States and (vi) delivery of the underlying Class B Earnout shares will not be to an address in the United States; OR |
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| | (B) the undersigned Holder is the original purchaser from the Company, pursuant to Regulation D under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”), of the Warrants, and at the time of such acquisition was a U.S. Person or was in the United States (or was acting on behalf of, or for the account or benefit of, a U.S. Person or a person in the United States), and confirms, as of the date of hereof, each of the representations, warranties, certifications and agreements made by it in connection with its acquisition of such Warrants, including, without limitation, its status as an “accredited investor” within the meaning of Rule 501(a) of Regulation D under the U.S. Securities Act, as though such representations, warranties, certifications and agreements were made on the date hereof and in respect of the acquisition of the Class B Earnout shares issuable upon exercise of the Warrants being exercised.; OR |
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| | (C) an exemption from the registration requirements of the U.S. Securities Act and all applicable state securities laws is available for the exercise of the Warrants, and attached hereto is a written opinion of U.S. counsel or other evidence in form and substance reasonably satisfactory to the Company to such effect. |
It is understood that the Company and any warrant agent may require evidence to verify the foregoing representations.
“United States” and “U.S. Person” have the meanings given to them in Regulation S under the U.S. Securities Act.
Notes:
(1) | Certificates will not be registered or delivered to an address in the United States unless Box B or C above is checked and the applicable requirements are complied with. If B or C is checked, a U.S. legend shall be affixed to the Class B Earnout shares for so long as required by applicable requirements of the U.S. Securities Act and applicable state securities laws. |
(2) | Subject to paragraph (1), if the Warrants have a U.S. legend describing transfer restrictions under the U.S. Securities Act affixed to them, the resulting Class B Earnout Shares will have the same U.S. legend affixed to them for so long as required by applicable requirements of the U.S. Securities Act. |
(3) | If Box B or C above, as applicable, is checked, Holders are encouraged to consult with the Company and any warrant agent in advance to determine that the legal opinion tendered in connection with the exercise or legending matters will be satisfactory in form and substance to the Company and any warrant agent. |
DATED this day of , 20 .
Name, Address and Signature of the Holder: | |
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(Name) | |
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(Address) | |
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[●] | | |
Per: | | |
| Authorized Signatory | |
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Exhibit 4.22
THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFER SET FORTH IN A LOCK-UP LETTER AGREEMENT, EFFECTIVE AS OF JULY 10, 2026, AS AMENDED. A COPY OF SUCH LOCK-UP AGREEMENT WILL BE FURNISHED WITHOUT CHARGE BY THE COMPANY TO THE HOLDER HEREOF UPON WRITTEN REQUEST.
UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF MUST NOT TRADE THE SECURITY BEFORE THE DATE THE COMPANY BECAME A REPORTING ISSUER IN ANY PROVINCE OR TERRITORY OF CANADA.
THE SECURITIES REPRESENTED HEREBY AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “U.S. SECURITIES ACT”), OR UNDER ANY STATE SECURITIES LAWS. THE HOLDER HEREOF, BY PURCHASING SUCH SECURITIES, AGREES FOR THE BENEFIT OF GENERAL FUSION GROUP LTD. (THE “COMPANY”) THAT THE SECURITIES REPRESENTED HEREBY MAY BE OFFERED, SOLD OR OTHERWISE TRANSFERRED ONLY (A) TO THE COMPANY, (B) OUTSIDE THE UNITED STATES IN ACCORDANCE WITH RULE 904 OF REGULATION S UNDER THE U.S. SECURITIES ACT, (C) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT OR AN EXEMPTION FROM REGISTRATION UNDER THE U.S. SECURITIES ACT PROVIDED BY (I) RULE 144 UNDER THE U.S. SECURITIES ACT, IF AVAILABLE, OR (II) RULE 144A UNDER THE U.S. SECURITIES ACT, IF AVAILABLE, AND, IN EACH CASE, IN COMPLIANCE WITH APPLICABLE U.S. STATE SECURITIES LAWS, OR (D) PURSUANT TO ANOTHER EXEMPTION FROM REGISTRATION UNDER THE U.S. SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS; PROVIDED THAT IN THE CASE OF TRANSFERS PURSUANT TO (C)(I) OR (D) ABOVE, THE HOLDER OF THE SECURITIES HAS FURNISHED TO THE COMPANY AN OPINION OF COUNSEL OF RECOGNIZED STANDING IN FORM AND SUBSTANCE SATISFACTORY TO THE COMPANY.
THESE WARRANTS MAY NOT BE EXERCISED BY OR ON BEHALF OF, OR FOR THE ACCOUNT OR BENEFIT OF, A PERSON IN THE UNITED STATES OR A U.S. PERSON UNLESS THE SHARES ISSUABLE UPON EXERCISE OF THESE WARRANTS HAVE BEEN REGISTERED UNDER THE U.S. SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS, OR AN EXEMPTION FROM SUCH REGISTRATION REQUIREMENTS IS AVAILABLE. “UNITED STATES” AND “U.S. PERSON” ARE AS DEFINED BY REGULATION S UNDER THE U.S. SECURITIES ACT.
WARRANTS TO PURCHASE
CLASS C EARNOUT SHARES
OF GENERAL FUSION GROUP LTD.
(Organized under the laws of British Columbia)
Warrant Certificate No. 026-EC-[●]
THIS IS TO CERTIFY THAT, for value received, WEIL, GOTSHAL & MANGES LLP (the “Holder”), is entitled to subscribe for and purchase up to [●] Class C Earnout Shares (the “Subject Shares”) in the capital of GENERAL FUSION GROUP LTD. (the “Company”) at a price per share equal to the Exercise Price on or before the Expiry Date, upon and subject to the further terms and conditions set forth in the Terms and Conditions attached hereto as Schedule “A” and incorporated by reference and deemed to be part hereof.
The Warrants may be exercised at the office of Company at 6020 Russ Baker Way, Richmond, BC V7B 1B4, Canada, Attention: Rob Crystal, Senior Vice President, Finance, or such other address as the Company may from time to time in writing direct (the “Exercise Location”).
Except as otherwise indicated, all capitalized terms used herein have the definitions set out in the Terms and Conditions attached hereto as Schedule “A”.
The Warrants, if unexercised, will expire after 4:00 p.m. on the Expiry Date.
IN WITNESS WHEREOF the Company has caused this Warrant Certificate to be executed by its duly authorized officer.
DATED: of September [●], 2026.
GENERAL FUSION GROUP LTD. | | |
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Per: | | |
| Authorized Signatory | |
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SCHEDULE “A”
WARRANT TERMS AND CONDITIONS
Terms and Conditions attached to the Warrant Certificate issued by General Fusion Group Ltd. to the Holder and dated [●], 2026.
ARTICLE 1- INTERPRETATION
1.1Definitions.In these Terms and Conditions, unless there is something in the subject matter or context inconsistent therewith,
(a) | “Business Day” means any day except a Saturday or Sunday and legal holidays for Canadian chartered banks in Vancouver, British Columbia; |
(b) | “Class C Earnout Shares” means Class C Earnout shares in the capital of the Company; |
(c) | “Common Shares” means Common shares in the capital of the Company (commonly referred to as subordinate voting shares); |
(d) | “Company” means General Fusion Group Ltd. until a successor company shall have become such in the manner prescribed in Article 5, and thereafter “Company” shall mean such successor company; |
(e) | “Exercise Price” means US$0.01 per Subject Share; |
(f) | “Expiry Date” means December 19, 2026; |
(g) | “Expiry Time” means 4:00pm (Vancouver Time) on the Expiry Date; |
(h) | “herein”, “hereby” and similar expressions refer to these Terms and Conditions as the same may be amended or modified from time to time; and the expression “Article” and “Section” followed by a number refer to the specified Article or Section of these Terms and Conditions; |
(i) | “Holder” means the Person identified as the Holder on the face page of the Warrant Certificate, or its nominee or its assignee; |
(j) | “Issue Date” means the date the Warrant Certificate was issued; |
(k) | “Person” means any individual, company, partnership, trustee, trust or unincorporated association, joint venture, syndicate, sole proprietorship, executor, administrator, or other legal representatives, regulatory body, or agency, government, governmental agency, authority or entity, however designated or constituted; |
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(l) | “Plan of Arrangement” means the plan of arrangement under section 288 of the Business Corporations Act (British Columbia) resulting in the consummation of the business combination between Spring Valley Acquisition Corp. III, General Fusion Inc. and 1573562 B.C. Ltd. on July 10, 2026; |
(m) | “Subject Shares” means [●] Class C Earnout Shares; |
(n) | “Warrants” means the share purchase warrants entitling the Holder to acquire the Subject Shares at the Exercise Price per share at any time prior to the Expiry Time, subject to such adjustments as are provided for in these Terms and Conditions, and “Warrant” means any one of them; |
(o) | “Warrant Certificate” means the certificate to which these Terms and Conditions are attached and all Schedules attached thereto; |
(p) | Words and phrases defined elsewhere herein or in the Warrant Certificate shall have the particular meanings so ascribed thereto; |
(q) | Words importing the singular number include the plural and vice versa and words importing the masculine gender include the feminine and neuter genders and words importing Persons in these Terms and Conditions shall include individuals, partnerships, corporations and any other entities, legal or otherwise; and |
1.2Applicable Law. The terms of this Warrant Certificate shall be construed exclusively in accordance with the laws of the Province of British Columbia and the laws of Canada applicable therein.
ARTICLE 2- EXERCISE OF WARRANTS
2.1Warrants Issued in Exchange for Original Warrants. This Warrant Certificate evidences Warrants issued in exchange for warrants to purchase common shares of General Fusion Inc. previously issued by General Fusion Inc. to the Holder (the “Original Warrants”) in connection with the Plan of Arrangement. In addition to these Warrants, and concurrently upon issuance of this Warrant Certificate, in exchange for the Original Warrants, the Holder shall receive warrants to purchase Common Shares (the “Common Warrants”) warrants to purchase Class A Earnout shares in the capital of the Company, and warrants to purchase Class B Earnout shares in the capital of the Company (together with these Warrants and the Common Warrants, the “Exchanged Warrants”).
2.2Exercise. The Holder’s right to subscribe for and purchase Class C Earnout Shares under the Warrants may be exercised, at any time prior to the Expiry Time, by the Holder delivering a copy of the Warrant Certificate, along with a duly completed and executed subscription in the form attached hereto along with any other evidence required thereby, to the Company at the Exercise Location in accordance with the terms of this Warrant Certificate.
2.3Closing of Share Purchase. The closing (the “Closing”) of each subscription for Class C Earnout Shares made hereunder as a result of the Holder exercising its Warrant rights shall take place on the third Business Day after the Warrant Certificate, completed subscription form and
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payment of the applicable Exercise Price are delivered to the Company at the Exercise Location, or such other time as the Company and the Holder mutually agree. At the Closing, the Company shall, by 3:00 p.m. on the fifth Business Day after satisfaction of such delivery requirements, deliver or cause to be delivered to the Holder in book-entry form the Class C Earnout Shares purchased and, to the extent less than the entire Warrants are exercised, a new warrant certificate in the same form as the Warrant Certificate in respect of the remainder of the Warrants.
2.4No Fractional Shares. The Company shall not be required to issue fractional Class C Earnout Shares or other securities in satisfaction of its obligations hereunder. If any fractional interest in a Class C Earnout Share or other security would, except for the provisions of this Section, be deliverable upon the exercise of Warrants, the Company shall instead issue the next lesser whole number of Class C Earnout Shares or other securities.
ARTICLE 3- COVENANTS OF THE COMPANY
3.1Reservation of Shares. If and as long as the Articles of the Company shall limit the number of authorized Class C Earnout Shares, it will reserve and keep available a sufficient number of Class C Earnout Shares for the purpose of enabling it to satisfy its obligations to issue Class C Earnout Shares upon the exercise of the Warrants.
3.2Fully Paid, Validly Issued Shares. The Company warrants that all Class C Earnout Shares issued upon the exercise of the Warrants will be fully paid and non-assessable and duly and validly issued.
3.3Issue in Substitution for Lost Certificate. If the Warrant Certificate becomes mutilated, lost, destroyed or stolen, the Company shall issue and deliver a new Warrant Certificate of like date and tenor as the one mutilated, lost, destroyed or stolen, in exchange for and in place of and upon cancellation of such mutilated, lost, destroyed or stolen Warrant Certificate, at no cost to the Holder, upon the Holder delivering to the Company a statutory declaration of loss and indemnity in the form prescribed by the Company’s constating documents.
3.4Exchange of Certificates. The Holder may exchange a certificate or certificates representing Warrants for one or more new Warrant certificates representing the same aggregate number of Warrants, at no cost to the Holder.
ARTICLE 4- ADJUSTMENTS
4.1Adjustment of Subscription and Purchase Rights. From and after the Issue Date, the the number of Class C Earnout Shares covered by and deliverable upon the exercise of the Warrants will be subject to adjustment in the following events and in the following manner:
(a) | if and whenever at any time prior to the Expiry Date, the Company shall: |
(i) | subdivide, redivide or change its outstanding Class C Earnout Shares into a greater number of Class C Earnout Shares; or |
(ii) | reduce, combine or consolidate its outstanding Class C Earnout Shares into a smaller number of Class C Earnout Shares; |
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(any of which is referred to as a “Capital Reorganization”) the number of Class C Earnout Shares obtainable under each Warrant (the “Adjusted Shares”) shall be adjusted immediately after the effective date of such Capital Reorganization, by multiplying the number of Class C Earnout Shares theretofore obtainable on the exercise thereof by a fraction of which the numerator shall be the total number of Class C Earnout Shares outstanding immediately after such date and the denominator shall be the total number of Class C Earnout Shares outstanding immediately prior to such date. Such adjustment shall be made successively whenever any event referred to in this subsection shall occur;
(b) | if and whenever at any time prior to the Expiry Date, there is a reclassification of the Class C Earnout Shares or a capital reorganization of the Company (other than as described in Section 4.1(a)) or a consolidation, amalgamation or merger of the Company with or into any other body corporate, trust, partnership or other entity, or a sale or conveyance of the property and assets of the Company as an entirety or substantially as an entirety to any other body corporate, trust, partnership or other entity, if the Holder has not exercised its right of acquisition, as to the effective date of such reclassification, capital reorganization, consolidation, amalgamation, merger, sale or conveyance, upon the exercise of such right thereafter, the Holder shall be entitled to receive and shall accept, in lieu of the number of Class C Earnout Shares such Holder would otherwise be entitled to acquire, the number of shares or other securities or property of the Company or of the body corporate, trust, partnership or other entity resulting from such merger, amalgamation or consolidation, or to which such sale or conveyance may be made, as the case may be, that such Holder would have been entitled to receive on such reclassification, capital reorganization, consolidation, amalgamation, merger, sale or conveyance, if, on the record date or the effective date thereof, as the case may be, the Holder had been the registered holder of the number of Class C Earnout Shares sought to be acquired by it; |
(c) | if and whenever at any time prior to the Expiry Date, the Company shall distribute to all holders of its Class C Earnout Shares any shares of the Company or evidences of its indebtedness or assets (excluding cash dividends or distributions paid from retained earnings or current year’s or prior year’s earnings of the Company) or rights or warrants to subscribe for or purchase any of its securities (excluding those referred to above) (any of the foregoing, including any right to subscribe for a security in a rights offering, being hereinafter in this subsection 4.1(c) called the “Securities”), then in each such case, the Company shall reserve shares, units or other entitlements of such Securities for distribution to the Holder upon exercise of this Warrant so that, in addition to the Class C Earnout Shares to which such Holder is entitled, such Holder will receive upon such exercise the same amount and kind of such Securities which such Holder would have received if the Holder had, immediately prior to the record date for the distribution of the Securities, exercised this Warrant; and |
(d) | the adjustments provided for in this Warrant Certificate in the number of Class C Earnout Shares and classes of securities which are to be received on the exercise of |
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Warrants are cumulative. After any adjustment pursuant to this Section, the term “Class C Earnout Shares” where used in this Warrant Certificate shall be interpreted to mean securities of any class or classes which, as a result of such adjustment and all prior adjustments pursuant to this Section, the Holder is entitled to receive upon the exercise of its Warrants, and the number of Class C Earnout Shares indicated by any exercise made pursuant to a Warrant shall be interpreted to mean the number of Class C Earnout Shares or other property or securities a Holder is entitled to receive, as a result of such adjustment and all prior adjustments pursuant to this Section, upon the full exercise of a Warrant.
4.2Determination of Adjustments. The adjustments provided for in this Warrant Certificate are cumulative. The Company shall, promptly after each adjustment made hereunder, provide the Holder with a certificate providing the relevant facts and calculations with respect to. If any questions shall at any time arise with respect to any adjustments to be made hereunder, such question shall be conclusively determined by an independent firm of Chartered Accountants who shall have access to all appropriate records, and such determination shall be binding upon the Company and the Holder.
ARTICLE 5- MERGER AND SUCCESSORS
5.1Company May Consolidate, etc. on Certain Terms. Nothing herein contained shall prevent any amalgamation or merger of the Company with or into any other corporation or corporations, or a conveyance or transfer of all or substantially all the properties and estates of the Company as an entirety to any corporation lawfully entitled to acquire and operate same; provided however that the corporation formed by such amalgamation or merger or which acquires by conveyance or transfer all or substantially all the properties and estates of the Company as an entirety shall be a corporation organized and existing under the laws of Canada or of the United States of America, or any province, state, district or territory thereof, and shall, simultaneously with such amalgamation, merger, conveyance or transfer, assume the due and punctual performance and observance of all the covenants and conditions hereof to be performed or observed by the Company.
5.2Successor Company Substituted. In case the Company, pursuant to Section 5.1 shall be amalgamated or merged with or into any other corporation or corporations, or shall convey or transfer all or substantially all of its properties and estates as an entirety to any other corporation, the successor corporation formed by such consolidation or amalgamation, or into which the Company shall have been amalgamated or merged or which shall have received a conveyance or transfer as aforesaid, shall succeed to and be substituted for the Company hereunder. Such changes in phraseology and form (but not in substance) may be made in the Warrant Certificate and herein as may be appropriate in view of such amalgamation, merger or transfer.
ARTICLE 6- GENERAL
6.1Further Acts. Each of the Company and the Holder shall at the request of the Holder, and at the expense of the Company, execute and deliver any further documents and do all acts and
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things as the Holder may reasonably require in order to carry out the true intent and meaning of this Warrant Certificate.
6.2Enurement. This Warrant Certificate shall enure to the benefit of and be binding upon the Company and the Holder, and their respective successors and permitted assigns.
6.3Time. Time shall be of the essence herein.
6.4Notices. The Company may change the Exercise Location to another location in British Columbia from time to time upon providing at least 10 days’ notice to the Holder.
6.5Transfer. The Warrants may not be assigned or transferred by the Holder without the prior written consent of the Company, which consent shall not be unreasonably withheld.
6.6Entire Agreement. The Exchanged Warrants constitute all of the warrants to purchase shares of the Company issuable in exchange for the Original Warrants and replace and supersede the Original Warrants in its entirety.
6.7Signature and Electronic Copies. This Warrant Certificate may be signed by electronic signature, which shall be deemed to be an original and shall be deemed to have the same legal effect and validity as a certificate bearing an original signature. Notwithstanding anything herein, delivery of an executed copy of this Warrant Certificate by electronic transmission or other means of electronic communication capable of producing a printed copy will be deemed to be an original execution and delivery of this Warrant Certificate. If this Warrant Certificate bears an electronic signature as contemplated above and the Company delivers or causes to be delivered this Warrant Certificate by electronic transmission pursuant to this Section 6.7, then the Company represents to the Holder that the electronically transmitted warrant is the only executed copy to be issued to the Holder by the Company or on behalf of the Company.
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WARRANT EXERCISE SUBSCRIPTION FORM
TO:GENERAL FUSION GROUP LTD.(the “Company”)
The undersigned, being the Holder of the attached Warrant Certificate, hereby subscribes for Class C Earnout shares of the Company upon and subject to the terms and conditions set forth in the Warrant Certificate and tenders payment of the aggregate Exercise Price (US$0.01) for such shares as follows:
◻ | certified cheque, bank draft or solicitors trust cheque in the amount of US$ payable to order of the Warrant Administrator, for the Company, enclosed herewith; |
◻ | Wire transfer of immediately available funds to the Warrant Administrator’s account, for the Company; or |
◻ | Other [Describe] |
Payment, if any, shall be made in accordance with Section 2.3 of Schedule “A” to the Warrant Certificate.
The undersigned represents, warrants and certifies as follows (one (only) of the following must be checked):
| | (A) the undersigned Holder (i) did not acquire the Warrants within the United States and was not a U.S. Person at the time the Warrants were acquired, (ii) is not in the United States, (iii) is not a U.S. Person, (iv) is not exercising the Warrants on behalf of, or for the account or benefit of, a U.S. Person or a person in the United States, (v) did not execute or deliver this Exercise Subscription Form in the United States and (vi) delivery of the underlying Class C Earnout shares will not be to an address in the United States; OR |
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| | (B) the undersigned Holder is the original purchaser from the Company, pursuant to Regulation D under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”), of the Warrants, and at the time of such acquisition was a U.S. Person or was in the United States (or was acting on behalf of, or for the account or benefit of, a U.S. Person or a person in the United States), and confirms, as of the date of hereof, each of the representations, warranties, certifications and agreements made by it in connection with its acquisition of such Warrants, including, without limitation, its status as an “accredited investor” within the meaning of Rule 501(a) of Regulation D under the U.S. Securities Act, as though such representations, warranties, certifications and agreements were made on the date hereof and in respect of the acquisition of the Class C Earnout shares issuable upon exercise of the Warrants being exercised.; OR |
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| | (C) an exemption from the registration requirements of the U.S. Securities Act and all applicable state securities laws is available for the exercise of the Warrants, and attached hereto is a written opinion of U.S. counsel or other evidence in form and substance reasonably satisfactory to the Company to such effect. |
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It is understood that the Company and any warrant agent may require evidence to verify the foregoing representations.
“United States” and “U.S. Person” have the meanings given to them in Regulation S under the U.S. Securities Act.
Notes:
(1) | Certificates will not be registered or delivered to an address in the United States unless Box B or C above is checked and the applicable requirements are complied with. If B or C is checked, a U.S. legend shall be affixed to the Class C Earnout shares for so long as required by applicable requirements of the U.S. Securities Act and applicable state securities laws. |
(2) | Subject to paragraph (1), if the Warrants have a U.S. legend describing transfer restrictions under the U.S. Securities Act affixed to them, the resulting Class C Earnout Shares will have the same U.S. legend affixed to them for so long as required by applicable requirements of the U.S. Securities Act. |
(3) | If Box B or C above, as applicable, is checked, Holders are encouraged to consult with the Company and any warrant agent in advance to determine that the legal opinion tendered in connection with the exercise or legending matters will be satisfactory in form and substance to the Company and any warrant agent. |
DATED this day of , 20 .
Name, Address and Signature of the Holder: | |
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(Name) | |
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(Address) | |
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[●] | | |
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Per: | | |
| Authorized Signatory | |
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Exhibit 4.23
[LEGENDS TO BE INCLUDED AS PER THE WARRANT ADMINISTRATOR AGREEMENT AND DIRECTION AND RESERVATION ORDER FROM THE COMPANY.]
GENERAL FUSION GROUP LTD.
WARRANT CERTIFICATE
(Warrants to Purchase Common Shares)
Warrant Certificate No. [●]
Number of Warrants: [●]
THIS IS TO CERTIFY THAT, for value received, [●]
(the “Holder”), is entitled to subscribe for and purchase fully paid and non-assessable common shares (commonly referred to as subordinate voting shares) in the capital of GENERAL FUSION GROUP LTD. (the “Company”) at a price per share equal to the Exercise Price on or before the Expiry Date, upon and subject to the further terms and conditions set forth in the Terms and Conditions attached hereto as Schedule “A” and incorporated by reference and deemed to be part hereof.
The Warrants may be exercised at the office of Odyssey Trust Company, in its capacity as warrant administrator of the Warrants (the “Warrant Administrator”), at 1310 – 1140 West Pender St., Vancouver BC V6E 4G1, Canada, Attention: Corporate Trust, or such other address as the Company may from time to time in writing direct (the “Exercise Location”).
Except as otherwise indicated, all capitalized terms used herein have the definitions set out in the Terms and Conditions attached hereto as Schedule “A”.
The Warrants, if unexercised, will expire after 4:00 p.m. (Vancouver time) on the Expiry Date.
[Remainder of page intentionally left blank.]
IN WITNESS WHEREOF the Company has caused this Warrant Certificate to be executed by its duly authorized officer.
DATED: September [●], 2026.
| GENERAL FUSION GROUP LTD. | |
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| Per: | |
| | Authorized Signatory |
Countersigned and Registered by:
ODYSSEY TRUST COMPANY, as warrant administrator
Per: | | |
| Authorized Signatory | |
SCHEDULE “A”
WARRANT TERMS AND CONDITIONS
Terms and Conditions attached to the Warrant Certificate issued by General Fusion Group Ltd. to the Holder and dated [●], 2026.
ARTICLE 1 - INTERPRETATION
1.1Definitions. In these Terms and Conditions, unless there is something in the subject matter or context inconsistent therewith, initially capitalized terms will have the meaning as set out herein, as follows:
(a) | “Business Day” means any day except a Saturday or Sunday and legal holidays for Canadian chartered banks in Vancouver, British Columbia; |
(b) | “Change of Control” means (i) a transfer (whether by merger, amalgamation, consolidation, exchange or otherwise), in one transaction or a series of related transactions, to a Person or group of affiliated Persons (other than an underwriter of the Company’s securities), of the Company’s securities or Shares if, after such closing, such Person or group of affiliated Persons would hold at least a majority of the total voting power represented by the outstanding voting securities of the Company or such other surviving or resulting entity, (ii) any reorganization, arrangement, merger, amalgamation or other consolidation of the Company, other than a transaction or series of related transactions in which the holders of the voting securities of the Company outstanding immediately prior to such transaction or series of related transactions retain, immediately after such transaction or series of related transactions, at least a majority of the total voting power represented by the outstanding voting securities of the Company or such other surviving or resulting entity, or (iii) a sale, lease, or other disposition of all or substantially all of the assets of the Company; |
(c) | “Company” means General Fusion Group Ltd. until a successor company shall have become such in the manner prescribed in Article 5, and thereafter “Company” shall mean such successor company; |
(d) | “Current Market Price” in respect of a Share at any date means the VWAP for the 20 consecutive Trading Days ending on the fifth Trading Day before such date on the Nasdaq or, if the Shares are not listed on the Nasdaq, then on such other stock exchange on which the Shares are then listed as may be selected by the Company or, if the Shares are not then listed on a stock exchange, on the over-the-counter market; provided that, if there is no market for Shares during all or part of such period during which the Current Market Price thereof would otherwise be determined, the Current Market Price in respect of a Share shall in respect of all or part of the period be determined by the Board of Directors of the Company in their reasonable judgment and in good faith; |
(e) | “Exempted Securities” means the following Shares and Shares deemed issued under the following Options and Convertible Securities (as defined below): |
(i) | Shares, Options or Convertible Securities issued as a dividend or distribution on Preferred Shares, if any; |
(ii) | Shares or Options issued to employees or directors of, or consultants or advisors to, the Company or any of its subsidiaries under a plan, agreement or arrangement approved by the Company’s board of directors; |
(iii) | Shares or Convertible Securities actually issued upon the exercise of Options or Shares actually issued upon the conversion or exchange of Convertible Securities, in each case provided the issuance is under the terms of the Option or Convertible Security; |
(iv) | Shares, Options or Convertible Securities issued to banks, equipment lessors or other financial institutions, or to real property lessors, under a debt financing, equipment leasing or real or immovable property leasing transaction approved by the Company’s board of directors (including shares underlying (directly or indirectly) any such Options or Convertible Securities); |
(v) | Shares, Options or Convertible Securities issued to suppliers or third party service providers in connection with the provision of goods or services under transactions approved by the Company’s board of directors; |
(vi) | Shares, Options or Convertible Securities issued in connection with sponsored research, collaboration, technology license, development, OEM, marketing or other similar agreements or strategic partnerships approved by the Company’s board of directors; or |
(vii) | Shares, Options or Convertible Securities issued by the Company to His Majesty the King in Right of Canada in connection with one or more Strategic Innovation Fund Contribution Agreements between such parties, including warrants to purchase Shares of the Company. |
(f) | “Exercise Price” means US$[11.548] per share; |
(g) | “Expiry Date” means the date that is the earlier of: (i) immediately before a Change of Control; and (ii) November 19, 2028; |
(h) | “Expiry Time” means 4:00 pm (Vancouver time) on the Expiry Date; |
(i) | “herein”, “hereby” and similar expressions refer to these Terms and Conditions as the same may be amended or modified from time to time; and the expression “Article” and “Section” followed by a number refer to the specified Article or Section of these Terms and Conditions; |
(j) | “Holder” means the Person identified as the Holder on the face page of the Warrant Certificate, or its nominee or its assignee; |
(k) | “Issue Date” means ______, 2026; |
(l) | “Nasdaq” means The Nasdaq Stock Market; |
(m) | “Options” means any rights, warrants or options to subscribe for, or purchase or otherwise acquire, Shares or Convertible Securities. |
(n) | “Person” means any individual, company, partnership, trustee, trust or unincorporated association, joint venture, syndicate, sole proprietorship, executor, administrator, or other |
legal representatives, regulatory body, or agency, government, governmental agency, authority or entity, however designated or constituted;
(o) | “Plan of Arrangement” means the plan of arrangement under section 288 of the Business Corporations Act (British Columbia) resulting in the consummation of the business combination between Spring Valley Acquisition Corp. III, General Fusion Inc. and 1573562 B.C. Ltd. on July 10, 2026; |
(p) | “Preferred Shares” means Preferred shares in the capital of the Company and the Convertible Preferred shares in the capital of the Company, if any; |
(q) | “SAFE Financing” means the simple agreement for future equity financing of General Fusion Inc. carried out between November 19, 2025 and January 4, 2026. |
(r) | “Share” means a common share in the capital of the Company; |
(s) | “Trading Day” means, with respect to the Nasdaq or other market for securities on which the securities of the Company are listed, any day on which such exchange or market is open for trading or quotation; |
(t) | “VWAP” means the volume weighted average trading price of a Share on the Nasdaq or such other principal stock exchange on which Shares are trading, calculated by dividing the total value by the total volume of Shares traded for the relevant period; |
(u) | “Warrants” means the share purchase warrants entitling the Holder to acquire the number of Shares set out in the Warrant Certificate at the Exercise Price per share at any time prior to the Expiry Time, subject to such adjustments as are provided for in these Terms and Conditions, and “Warrant” means any one of them; |
(v) | “Warrant Certificate” means the certificate to which these Terms and Conditions are attached and all Schedules attached thereto; |
(w) | Words and phrases defined elsewhere herein or in the Warrant Certificate shall have the particular meanings so ascribed thereto; and |
(x) | Words importing the singular number include the plural and vice versa and words importing the masculine gender include the feminine and neuter genders. |
1.2Applicable Law. The terms of this Warrant Certificate shall be construed exclusively in accordance with the laws of the Province of British Columbia and the laws of Canada applicable therein.
ARTICLE 2 - EXERCISE OF WARRANTS
2.1Warrants Issued in Exchange for Original Warrants. This Warrant Certificate evidences Warrants issued in exchange for warrants to purchase common shares of General Fusion Inc. previously issued by General Fusion Inc. to the Holder in connection with the SAFE Financing (the “Original Warrants”) and the Plan of Arrangement. In addition to these Warrants, and concurrently upon issuance of this Warrant Certificate, in exchange for the Original Warrants, the Holder shall receive warrants to purchase Class A Earnout shares of the capital of the Company, warrants to purchase Class B Earnout
shares in the capital of the Company, and warrants to purchase Class C Earnout shares in the capital of the Company (together with these Warrants, the “Exchanged Warrants”).
2.2Exercise. The Holder’s right to subscribe for and purchase Shares under the Warrants may be exercised, at any time prior to the Expiry Time, by the Holder delivering the Warrant Certificate, along with a duly completed and executed subscription in the form attached hereto along with any other evidence required thereby and payment therefor, to the Warrant Administrator at the Exercise Location in accordance with the terms of this Warrant Certificate. Any such deliveries to the Warrant Administrator at the Exercise Location will constitute delivery to the Company for the purposes of this Warrant Certificate.
2.3Closing of Share Purchase. The closing (the “Closing”) of each subscription for Shares made hereunder as a result of the Holder exercising its Warrant rights shall take place at 3 p.m. on the third Business Day after the Warrant Certificate and completed subscription form are delivered to the Warrant Administrator at the Exercise Location. At the Closing, unless the Holder elects to Net Exercise (as defined below) the Warrants pursuant to Section 2.5 hereof, the Holder shall deliver to the Warrant Administrator at the Exercise Location a certified cheque, bank draft or wire transfer payable to or to the order of the Warrant Administrator, for the benefit of the Company, in the applicable amount for the Shares subscribed for, in lawful money of the United States of America. Upon the exercise of Warrants, the Shares to be issued pursuant to the Warrants exercised shall be issued or deemed to have been issued and the person or persons to whom such Shares are to be issued shall become or be deemed to have become the holder or holders of record of such Shares on the date that the Warrant Administrator receives valid exercise documents (“Exercise Date”), provided the documents are received in good order, unless the register shall be closed on such date, in which case the Shares subscribed for shall be issued or deemed to have been issued and such person or persons become or be deemed to have become the holder or holders of record of such Shares, on the date on which such register is reopened. It is hereby understood that in order for persons to whom Shares are to be issued to become holders of Shares of record on the Exercise Date, beneficial holders must commence the exercise process sufficiently in advance so that the Warrant Administrator is in receipt of all items of exercise prior to the Expiry Date. Within three Business Days after the Exercise Date with respect to a Warrant, the Warrant Administrator shall use commercially reasonable efforts to cause to be delivered or mailed to the person or persons in whose name or names the Warrant is registered or, as directed on the Exercise Form if so specified in writing by the holder, cause to be delivered to such person or persons at the Exercise Location where the Warrant Certificate was surrendered, the appropriate number of Shares subscribed for, or any other appropriate evidence of the issuance of Shares to such person or persons in respect of Shares issued under the book entry registration system. The amounts held by the Warrant Administrator are at the sole risk of the Company and, without limiting the generality of the foregoing, the Warrant Administrator shall have no responsibility or liability for any diminution of the funds which may result from any deposit made with the Canadian Chartered Banks listed in Schedule 1 of the Bank Act (Canada) (“Approved Bank”) pursuant to this section, including any losses resulting from a default by the Approved Bank or other credit losses (whether or not resulting from such a default). To the extent less than the entire Warrants are exercised, a new warrant certificate in the same form as the Warrant Certificate in respect of the remainder of the Warrants.
2.4No Fractional Shares. The Company shall not be required to issue fractional Shares or other securities in satisfaction of its obligations hereunder. If any fractional interest in a Share or other security would, except for the provisions of this section, be deliverable upon the exercise of Warrants, the Company shall instead issue the next lesser whole number of Shares or other securities and no cash or other consideration will be paid in lieu of fractional shares.
2.5Net Exercise. In lieu of exercising this Warrant for cash, the Holder may elect to receive all or a portion of the Shares under the Warrants by surrender of this Warrant Certificate to the Warrant Administrator at the Exercise Location together with a duly completed and executed subscription in the
form attached hereto indicating such election (a “Net Exercise”). If the Holder Net Exercises, it shall have the rights described in Section 2.3 hereof, and the Company shall issue to the Holder a number of Shares computed using the following formula:

Where
X = | The number of Shares to be issued to the Holder. |
Y = | The number of Shares purchasable under this Warrant (subject to adjustment under Article 4) or, if only a portion of the Warrant is being exercised, the portion of the Warrant being cancelled (at the date of such calculation). |
A = | The Current Market Price of one Share |
B = | The Exercise Price |
ARTICLE 3 - COVENANTS OF THE COMPANY
3.1Reservation of Shares. The Company will reserve and keep available a sufficient number of Shares for the purpose of enabling it to satisfy its obligations to issue Shares upon the exercise of the Warrants.
3.2Fully Paid, Validly Issued Shares. The Company warrants that all Shares issued upon the exercise of the Warrants will, upon payment of the purchase price therefor by the Holder, be fully paid and non-assessable and duly and validly issued.
3.3Issue in Substitution for Lost Certificate. If the Warrant Certificate becomes mutilated, lost, destroyed or stolen, the Company shall issue and deliver a new Warrant Certificate of like date and tenor as the one mutilated, lost, destroyed or stolen, in exchange for and in place of and upon cancellation of such mutilated, lost, destroyed or stolen Warrant Certificate, at no cost to the Holder, upon the Holder delivering to the Company a statutory declaration of loss, surety and indemnity in the form prescribed by the Company’s constating documents and satisfactory to the Warrant Administrator.
3.4Exchange of Certificates. The Holder may exchange a certificate or certificates representing Warrants for one or more new Warrant certificates representing the same aggregate number of Warrants, at no cost to the Holder.
ARTICLE 4 - ADJUSTMENTS
4.1Adjustment of Subscription and Purchase Rights. From and after the Issue Date, the Exercise Price and the number of Shares covered by and deliverable upon the exercise of the Warrants will be subject to adjustment in the following events and in the following manner:
(a) | if and whenever at any time prior to the Expiry Date, the Company shall: |
(i) | subdivide, redivide or change its outstanding Shares into a greater number of Shares; or |
(ii) | reduce, combine or consolidate its outstanding Shares into a smaller number of Shares; |
(any of which is referred to as a “Capital Reorganization”) the number of Shares obtainable under each Warrant shall be adjusted immediately after the effective date of such Capital Reorganization, by multiplying the number of Shares theretofore obtainable on the exercise thereof by a fraction of which the numerator shall be the total number of Shares outstanding immediately after such date and the denominator shall be the total number of Shares outstanding immediately prior to such date. Such adjustment shall be made successively whenever any event referred to in this subsection shall occur;
(b) | if and whenever at any time prior to the Expiry Date, the Company shall engage in a Capital Reorganization, the Exercise Price shall, on the effective date of such Capital Reorganization, be adjusted by multiplying the Exercise Price in effect on such effective date by a fraction: |
(i) | the numerator of which shall be the number of Shares outstanding before giving effect to such Capital Reorganization; and |
(ii) | the denominator of which is the number of Shares outstanding after giving effect to such Capital Reorganization; |
such adjustment will be made successively whenever any event referred to in this subsection shall occur,
(c) | if and whenever at any time prior to the Expiry Date, there is |
(i) | a reclassification of the Shares; |
(ii) | a capital reorganization of the Company (other than as described in section 4.1(a) and (b)); |
(iii) | a consolidation, amalgamation or merger of the Company with or into any other body corporate, trust, partnership or other entity; or |
(iv) | sale or conveyance of the property and assets of the Company as an entirety or substantially as an entirety to any other body corporate, trust, partnership or other entity, |
(each a “Corporate Event”), if the Holder has not exercised its right of acquisition, as to the effective date of such Corporate Event, upon the exercise of such right thereafter, the Holder shall be entitled to receive and shall accept, in lieu of the number of Shares such Holder would otherwise be entitled to acquire, the number of shares or other securities or property of the Company or of the body corporate, trust, partnership or other entity resulting from such merger, amalgamation, consolidation, or to which such sale or conveyance may be made, as the case may be, that such Holder would have been entitled to receive on such Corporate Event, if, on the record date or the effective date thereof, as the case may be, the Holder had been the registered holder of the number of Shares sought to be acquired by it;
(d) | if and whenever at any time prior to the Expiry Date, the Company shall distribute to all holders of its Shares any shares of the Company (other than Shares) or evidences of its indebtedness or assets (excluding cash dividends or distributions paid from retained earnings or current year's or prior year’s earnings of the Company) or rights or warrants to subscribe for or purchase any of its securities (excluding those referred to above) (any of the foregoing, including any right to subscribe for a security in a rights offering, being hereinafter in this subsection 4.1(d) called the “Securities”), |
then in each such case, the Company shall reserve shares, units or other entitlements of such Securities for distribution to the Holder upon exercise of this Warrant so that, in addition to the Shares to which such Holder is entitled, such Holder will receive upon such exercise the same amount and kind of such Securities which such Holder would have received if the Holder had, immediately prior to the record date for the distribution of the Securities, exercised this Warrant;
(e) | if and whenever at any time after the Issue Date and prior to the Expiry Time, the Company issues or sells, or is deemed to issue or sell, any Shares or any securities convertible into, exchangeable for or otherwise exercisable to acquire Shares (together, the “Convertible Securities”), in each case other than Exempted Securities at an effective price per Share that is less than the then-effective Exercise Price (each, a “Dilutive Issuance”), then, concurrently with such Dilutive Issuance, the Exercise Price shall be adjusted and the number of Shares issuable upon exercise of this Warrant shall be increased, in each case as follows: |
(i) | Dilutive Issuance Adjustment. The Exercise Price then in effect (“EPold”) shall be reduced to the price determined by the following broad-based weighted average formula: |
EPnew = EPold × (A + (C × Pnew / EPold)) / (A + C)
where:
“A” means the number of Shares outstanding immediately prior to the Dilutive Issuance calculated on a broad-based fully diluted basis, which includes all shares issuable upon exercise, conversion or exchange of all outstanding options, warrants and other Convertible Securities (whether or not then exercisable, vested or convertible), but excludes (x) any Shares issuable upon exercise of this Warrant and other warrants issued in connection with the SAFE Financing; and (y) Exempted Securities to the extent provided in the definition of Exempted Securities;
“C” means the total number of Shares issued in the Dilutive Issuance (or, in the case of Convertible Securities, the maximum number of Shares initially issuable upon exercise, conversion or exchange thereof, determined as of issuance), in each case excluding Exempted Securities; and
“Pnew” means the effective price per Share in the Dilutive Issuance, determined in accordance with subsection (iii) below.
(ii) | Proportionate Increase in Shares Issuable. Immediately following any adjustment to the Exercise Price under subsection (i), the number of Shares issuable upon exercise of this Warrant shall be increased such that the aggregate consideration payable upon full exercise immediately prior to such adjustment (EPold multiplied by the number of Shares then issuable) equals the aggregate consideration payable upon full exercise immediately after such adjustment (EPnew multiplied by the number of Shares thereafter issuable). For clarity, the number of Shares thereafter issuable shall equal the number of Shares previously issuable multiplied by (EPold / EPnew). |
(iii) | Deemed Issuances; Determination of Pnew. |
(A) | Options, warrants and rights. If the Company issues or sells any options, warrants or other rights to acquire Shares (“Rights”), the Company shall be deemed to have |
issued the maximum number of Shares issuable upon exercise of such Rights at an aggregate consideration equal to (x) the total consideration received by the Company for the issuance of such Rights plus (y) the aggregate exercise price payable upon such exercise; in such case, “Pnew” shall be the quotient of such aggregate consideration divided by the maximum number of Shares issuable upon exercise of such Rights.
(B) | Convertible or exchangeable securities. If the Company issues or sells any Convertible Securities (other than Rights described in clause (A) above), the Company shall be deemed to have issued the maximum number of Shares issuable upon conversion or exchange of such Convertible Securities at an aggregate consideration equal to (x) the consideration received by the Company for the issuance of such Convertible Securities plus (y) the consideration, if any, payable upon such conversion or exchange; in such case, “Pnew” shall be the quotient of such aggregate consideration divided by the maximum number of Shares initially issuable upon conversion or exchange of such Convertible Securities (assuming no price-based anti-dilution or similar adjustments in such securities). |
(C) | Subsequent changes. If the exercise, conversion or exchange price of any such Rights or Convertible Securities is at any time changed or reset (including by operation of anti-dilution or repricing provisions), then the Exercise Price (and the number of Shares issuable upon exercise of this Warrant) shall be readjusted, effective as of the date of such change or reset, as if a new Dilutive Issuance occurred at such changed or reset price. |
(D) | Expiration or cancellation. If any such Rights or Convertible Securities expire, terminate or are cancelled without having been exercised, converted or exchanged, the Exercise Price (and the number of Shares issuable upon exercise of this Warrant) shall be readjusted, effective as of the date of such expiration, termination or cancellation, to the Exercise Price (and number of Shares) that would then be in effect had such Rights or Convertible Securities never been issued |
(iv) | Excluded Issuances. No adjustment shall be made pursuant to this Section 4.1(e) with respect to Exempted Securities. For clarity, issuances that constitute Exempted Securities are excluded both from “A” and “C” to the extent provided in the definition of Exempted Securities. |
(v) | No Adjustment for Issuances at or Above Exercise Price. No adjustment shall be made pursuant to this Section 4.1(e) with respect to any issuance, sale or deemed issuance at an effective price per Share equal to or greater than the then-effective Exercise Price. |
(vi) | Certificate and Notice. Promptly following any adjustment under this Section 4.1(e), the Company shall deliver to the Holder a certificate of an officer of the Company setting forth in reasonable detail the calculation of such adjustment and the facts upon which it is based, including the consideration received (or deemed received), the number of Shares issued (or deemed issued), and the resulting Exercise Price and the number of Shares issuable upon exercise of this Warrant thereafter. |
4.2Determination of Adjustments. The adjustments provided for in this Warrant Certificate are cumulative. The Company shall, promptly after each adjustment made hereunder, provide the Holder with a certificate providing the relevant facts and calculations with respect to any such adjustments. If any
questions shall at any time arise with respect to any adjustments to be made hereunder, such question shall be conclusively determined by an independent firm of Chartered Accountants who shall have access to all appropriate records, and such determination shall be binding upon the Company and the Holder.
ARTICLE 5 - MERGER AND SUCCESSORS
5.1Company May Consolidate, etc. on Certain Terms. Nothing herein contained shall prevent any amalgamation or merger of the Company with or into any other corporation or corporations, or a conveyance or transfer of all or substantially all the properties and estates of the Company as an entirety to any corporation lawfully entitled to acquire and operate same; provided however that the corporation formed by such amalgamation or merger or which acquires by conveyance or transfer all or substantially all the properties and estates of the Company as an entirety shall be a corporation organized and existing under the laws of Canada or of the United States of America, or any province, state, district or territory thereof, and shall, simultaneously with such amalgamation, merger, conveyance or transfer, assume the due and punctual performance and observance of all the covenants and conditions hereof to be performed or observed by the Company.
5.2Successor Company Substituted. In case the Company, pursuant to Section 5.1 shall be amalgamated or merged with or into any other corporation or corporations, or shall convey or transfer all or substantially all of its properties and estates as an entirety to any other corporation, the successor corporation formed by such consolidation or amalgamation, or into which the Company shall have been amalgamated or merged or which shall have received a conveyance or transfer as aforesaid, shall succeed to and be substituted for the Company hereunder. Such changes in phraseology and form (but not in substance) may be made in the Warrant Certificate and herein as may be appropriate in view of such amalgamation, merger or transfer.
ARTICLE 6 - GENERAL
6.1Further Acts. Each of the Company and the Holder shall at the request of the Holder, and at the expense of the Company, execute and deliver any further documents and do all acts and things as the Holder may reasonably require in order to carry out the true intent and meaning of this Warrant Certificate.
6.2Enurement. This Warrant Certificate shall enure to the benefit of and be binding upon the Company and the Holder, and their respective successors and permitted assigns.
6.3Time. Time shall be of the essence herein.
6.4Notices. In case at any time:
(a) | the Company shall pay any dividend payable in shares upon its Shares or make any distribution to the holders of its Shares; |
(b) | the Company shall offer for subscription pro rata to the holders of its Shares any additional shares of any class or other rights; or |
(c) | there shall be a voluntary or involuntary Change of Control, dissolution, liquidation or winding-up of the Company; |
then, and in any one or more of such cases, the Company shall give to the Holder of this Warrant Certificate at least 14 days prior written notice of the date on which the books of the Company shall close or a record shall be taken for such dividend or distribution, or subscription rights, or dissolution, liquidation or winding-up. Each such written notice shall be given by email, first class mail, or registered postage prepaid, addressed to the Holder of this Warrant at the address of such Holder, as shown on the books of the Company.
The Company may change the Exercise Location to another location in British Columbia from time to time upon providing at least 10 days’ notice to the Holder.
6.5Transfer. The Warrants may not be assigned or transferred by the Holder without the prior written consent of the Company, which consent shall not be unreasonably withheld.
6.6Entire Agreement. The Exchanged Warrants constitute all of the warrants to purchase shares of the Company issuable in exchange for the Original Warrants and replace and supersede the Original Warrants in its entirety.
WARRANT EXERCISE SUBSCRIPTION FORM
TO: GENERAL FUSION GROUP LTD. (the “Company”)
The undersigned, being the Holder of the attached Warrant Certificate, hereby irrevocably subscribes for ____________________ Common shares of the Company upon and subject to the terms and conditions set forth in the Warrant Certificate and tenders payment of the aggregate Exercise Price (US$[11.548]) for such shares as follows:
☐ | certified cheque, bank draft or solicitors trust cheque in the amount of US$________ payable to order of the Warrant Administrator, for the Company, enclosed herewith; |
☐ | Wire transfer of immediately available funds to the Warrant Administrator’s account, for the Company; |
☐ | Net Exercise pursuant to Section 2.5 of the Warrant; or |
☐ | Other [Describe] __________________________________________ |
Payment, if any, shall be made in accordance with Section 2.3 of Schedule “A” to the Warrant Certificate.
The undersigned represents, warrants and certifies as follows (one (only) of the following must be checked):
☐(A)the undersigned Holder (i) did not acquire the Warrants within the United States and was not a U.S. Person at the time the Warrants were acquired, (ii) is not in the United States, (iii) is not a U.S. Person, (iv) is not exercising the Warrants on behalf of, or for the account or benefit of, a U.S. Person or a person in the United States, (v) did not execute or deliver this Exercise Subscription Form in the United States and (vi) delivery of the underlying common shares will not be to an address in the United States; OR
☐(B)the undersigned Holder is the original purchaser from the Company, pursuant to Regulation D under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”), of the Warrants, and at the time of such acquisition was a U.S. Person or was in the United States (or was acting on behalf of, or for the account or benefit of, a U.S. Person or a person in the United States), and confirms, as of the date of hereof, each of the representations, warranties, certifications and agreements made by it in connection with its acquisition of such Warrants, including, without limitation, its status as an “accredited investor” within the meaning of Rule 501(a) of Regulation D under the U.S. Securities Act, as though such representations, warranties, certifications and agreements were made on the date hereof and in respect of the acquisition of the common shares issuable upon exercise of the Warrants being exercised.; OR
☐(C)an exemption from the registration requirements of the U.S. Securities Act and all applicable state securities laws is available for the exercise of the Warrants, and attached hereto is a written opinion of U.S. counsel or other evidence in form and substance reasonably satisfactory to the Company to such effect.
It is understood that the Company and any warrant agent/administrator may require evidence to verify the foregoing representations.
“United States” and “U.S. Person” have the meanings given to them in Regulation S under the U.S. Securities Act.
Notes:
(1)Certificates will not be registered or delivered to an address in the United States unless Box B or C above is checked and the applicable requirements are complied with. If B or C is checked, a U.S. legend shall be affixed to the common shares for so long as required by applicable requirements of the U.S. Securities Act and applicable state securities laws.
(2)Subject to paragraph (1), if the Warrants have a U.S. legend describing transfer restrictions under the U.S. Securities Act affixed to them, the resulting common shares will have the same U.S. legend affixed to them for so long as required by applicable requirements of the U.S. Securities Act.
(3)If Box B or C above, as applicable, is checked, Holders are encouraged to consult with the Company and any warrant agent/administrator in advance to determine that the legal opinion tendered in connection with the exercise or legending matters will be satisfactory in form and substance to the Company and any warrant agent.
DATED this _____ day of _________________, 20___.
Please print full name in which the certificate representing the Shares are to be issued.
Name, Address and Signature of the Holder:
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(Name) | | |
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(Address) | | |
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(Email) | | |
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| Authorized Signatory | |
Exhibit 4.24
[LEGENDS TO BE INCLUDED AS PER THE WARRANT ADMINISTRATOR AGREEMENT AND DIRECTION AND RESERVATION ORDER FROM THE COMPANY.]
GENERAL FUSION GROUP LTD.
WARRANT CERTIFICATE
(Warrants to Purchase Class A Earnout Shares)
Warrant Certificate No. [●]
Number of Warrants: [●]
THIS IS TO CERTIFY THAT, for value received, [●]
(the “Holder”), is entitled to subscribe for and purchase fully paid and non-assessable Class A earnout shares in the capital of GENERAL FUSION GROUP LTD. (the “Company”) at a price per share equal to the Exercise Price on or before the Expiry Date, upon and subject to the further terms and conditions set forth in the Terms and Conditions attached hereto as Schedule “A” and incorporated by reference and deemed to be part hereof.
The Warrants may be exercised at the office of Odyssey Trust Company, in its capacity as warrant administrator of the Warrants (the “Warrant Administrator”) at 1310 – 1140 West Pender St., Vancouver BC V6E 4G1, Canada, Attention: Corporate Trust, or such other address as the Company may from time to time in writing direct (the “Exercise Location”).
Except as otherwise indicated, all capitalized terms used herein have the definitions set out in the Terms and Conditions attached hereto as Schedule “A”.
The Warrants, if unexercised, will expire after 4:00 p.m. (Vancouver time) on the Expiry Date.
[Remainder of page intentionally left blank.]
IN WITNESS WHEREOF, the Company has caused this Warrant Certificate to be executed by its duly authorized officer.
DATED: September [●], 2026.
| | GENERAL FUSION GROUP LTD. | |||
| | | | ||
| | Per: | | ||
| | | Authorized Signatory | ||
Countersigned and Registered by: | | | |||
| | | |||
ODYSSEY TRUST COMPANY, as warrant administrator | | | |||
| | | |||
Per: | | | | ||
| Authorized Signatory | | | ||
SCHEDULE “A”
WARRANT TERMS AND CONDITIONS
Terms and Conditions attached to the Warrant Certificate issued by General Fusion Group Ltd. to the Holder and dated [●], 2026.
ARTICLE 1 - INTERPRETATION
1.1Definitions. In these Terms and Conditions, unless there is something in the subject matter or context inconsistent therewith, initially capitalized terms will have the meaning as set out herein, as follows:
(a) | “Business Day” means any day except a Saturday or Sunday and legal holidays for Canadian chartered banks in Vancouver, British Columbia; |
(b) | “Change of Control” means (i) a transfer (whether by merger, amalgamation, consolidation, exchange or otherwise), in one transaction or a series of related transactions, to a Person or group of affiliated Persons (other than an underwriter of the Company’s securities), of the Company’s securities if, after such closing, such Person or group of affiliated Persons would hold at least a majority of the total voting power represented by the outstanding voting securities of the Company or such other surviving or resulting entity, (ii) any reorganization, arrangement, merger, amalgamation or other consolidation of the Company, other than a transaction or series of related transactions in which the holders of the voting securities of the Company outstanding immediately prior to such transaction or series of related transactions retain, immediately after such transaction or series of related transactions, at least a majority of the total voting power represented by the outstanding voting securities of the Company or such other surviving or resulting entity, or (iii) a sale, lease, or other disposition of all or substantially all of the assets of the Company; |
(c) | “Class A Earnout Share” means a Class A Earnout share in the capital of the Company; |
(d) | “Common Shares” means Common shares in the capital of the Company (commonly referred to as subordinate voting shares); |
(e) | “Company” means General Fusion Group Ltd. until a successor company shall have become such in the manner prescribed in Article 5, and thereafter “Company” shall mean such successor company; |
(f) | “Exercise Price” means US$0.01 per share; |
(g) | “Expiry Date” means the date that is the earlier of: (i) immediately before a Change of Control; and (ii) November 19, 2028; |
(h) | “Expiry Time” means 4:00 pm (Vancouver time) on the Expiry Date; |
(i) | “herein”, “hereby” and similar expressions refer to these Terms and Conditions as the same may be amended or modified from time to time; and the expression “Article” and “Section” followed by a number refer to the specified Article or Section of these Terms and Conditions; |
(j) | “Holder” means the Person identified as the Holder on the face page of the Warrant Certificate, or its nominee or its assignee; |
(k) | “Issue Date” means ______, 2026; |
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(l) | “Person” means any individual, company, partnership, trustee, trust or unincorporated association, joint venture, syndicate, sole proprietorship, executor, administrator, or other legal representatives, regulatory body, or agency, government, governmental agency, authority or entity, however designated or constituted; |
(m) | “Plan of Arrangement” means the plan of arrangement under section 288 of the Business Corporations Act (British Columbia) resulting in the consummation of the business combination between Spring Valley Acquisition Corp. III, General Fusion Inc. and 1573562 B.C. Ltd. on July 10, 2026; |
(n) | “SAFE Financing” means the simple agreement for future equity financing of General Fusion Inc. carried out between November 19, 2025 and January 4, 2026; |
(o) | “Warrants” means the share purchase warrants entitling the Holder to acquire the number of Class A Earnout Shares set out in the Warrant Certificate at the Exercise Price per share at any time prior to the Expiry Time, subject to such adjustments as are provided for in these Terms and Conditions, and “Warrant” means any one of them; |
(p) | “Warrant Certificate” means the certificate to which these Terms and Conditions are attached and all Schedules attached thereto; |
(q) | Words and phrases defined elsewhere herein or in the Warrant Certificate shall have the particular meanings so ascribed thereto; and |
(r) | Words importing the singular number include the plural and vice versa and words importing the masculine gender include the feminine and neuter genders. |
1.2Applicable Law. The terms of this Warrant Certificate shall be construed exclusively in accordance with the laws of the Province of British Columbia and the laws of Canada applicable therein.
ARTICLE 2 - EXERCISE OF WARRANTS
2.1Warrants Issued in Exchange for Original Warrants. This Warrant Certificate evidences Warrants issued in exchange for warrants to purchase common shares of General Fusion Inc. previously issued by General Fusion Inc. to the Holder in connection with the SAFE Financing (the “Original Warrants”) and the Plan of Arrangement. In addition to these Warrants, and concurrently upon issuance of this Warrant Certificate, in exchange for the Original Warrants, the Holder shall receive warrants to purchase Common Shares (the “Common Warrants”, warrants to purchase Class B Earnout shares in the capital of the Company, and warrants to purchase Class C Earnout shares in the capital of the Company (together with the Warrants and Common Warrants, the “Exchanged Warrants”).
2.2Exercise. The Holder’s right to subscribe for and purchase Class A Earnout Shares under the Warrants may be exercised, at any time prior to the Expiry Time, by the Holder delivering the Warrant Certificate, along with a duly completed and executed subscription in the form attached hereto along with any other evidence required thereby and payment therefor, to the Warrant Administrator at the Exercise Location in accordance with the terms of this Warrant Certificate. Any such deliveries to the Warrant Administrator at the Exercise Location will constitute delivery to the Company for the purposes of this Warrant Certificate.
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2.3Closing of Share Purchase. The closing (the “Closing”) of each subscription for Class A Earnout Shares made hereunder as a result of the Holder exercising its Warrant rights shall take place at 3 p.m. on the third Business Day after the Warrant Certificate and completed subscription form are delivered to the Warrant Administrator at the Exercise Location. At the Closing, the Holder shall deliver to the Warrant Administrator at the Exercise Location a certified cheque, bank draft or wire transfer payable to or to the order of the Warrant Administrator, for the benefit of the Company, in the applicable amount for the Class A Earnout Shares subscribed for, in lawful money of the United States of America. Upon the exercise of Warrants, the Shares to be issued pursuant to the Warrants exercised shall be issued or deemed to have been issued and the person or persons to whom such Shares are to be issued shall become or be deemed to have become the holder or holders of record of such Shares on the date that the Warrant Administrator receives valid exercise documents (“Exercise Date”), provided the documents are received in good order, unless the register shall be closed on such date, in which case the Shares subscribed for shall be issued or deemed to have been issued and such person or persons become or be deemed to have become the holder or holders of record of such Shares, on the date on which such register is reopened. It is hereby understood that in order for persons to whom Shares are to be issued to become holders of Shares of record on the Exercise Date, beneficial holders must commence the exercise process sufficiently in advance so that the Warrant Administrator is in receipt of all items of exercise prior to the Expiry Date. Within three Business Days after the Exercise Date with respect to a Warrant, the Warrant Administrator shall use commercially reasonable efforts to cause to be delivered or mailed to the person or persons in whose name or names the Warrant is registered or, as directed on the Exercise Form if so specified in writing by the holder, cause to be delivered to such person or persons at the Exercise Location where the Warrant Certificate was surrendered, the appropriate number of Shares subscribed for, or any other appropriate evidence of the issuance of Shares to such person or persons in respect of Shares issued under the book entry registration system. The amounts held by the Warrant Administrator are at the sole risk of the Company and, without limiting the generality of the foregoing, the Warrant Administrator shall have no responsibility or liability for any diminution of the funds which may result from any deposit made with the Canadian Chartered Banks listed in Schedule 1 of the Bank Act (Canada) (“Approved Bank”) pursuant to this section, including any losses resulting from a default by the Approved Bank or other credit losses (whether or not resulting from such a default). To the extent less than the entire Warrants are exercised, a new warrant certificate in the same form as the Warrant Certificate in respect of the remainder of the Warrants.
2.4No Fractional Shares. The Company shall not be required to issue fractional Class A Earnout Shares or other securities in satisfaction of its obligations hereunder. If any fractional interest in a Class A Earnout Share or other security would, except for the provisions of this section, be deliverable upon the exercise of Warrants, the Company shall instead issue the next lesser whole number of Class A Earnout Shares or other securities and no cash or other consideration will be paid in lieu of fractional shares.
ARTICLE 3 - COVENANTS OF THE COMPANY
3.1Reservation of Shares. The Company will reserve and keep available a sufficient number of Class A Earnout Shares for the purpose of enabling it to satisfy its obligations to issue Class A Earnout Shares upon the exercise of the Warrants.
3.2Fully Paid, Validly Issued Shares. The Company warrants that all Class A Earnout Shares issued upon the exercise of the Warrants will, upon payment of the purchase price therefor by the Holder, be fully paid and non-assessable and duly and validly issued.
3.3Issue in Substitution for Lost Certificate. If the Warrant Certificate becomes mutilated, lost, destroyed or stolen, the Company shall issue and deliver a new Warrant Certificate of like date and tenor as the one mutilated, lost, destroyed or stolen, in exchange for and in place of and upon cancellation of such
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mutilated, lost, destroyed or stolen Warrant Certificate, at no cost to the Holder, upon the Holder delivering to the Company a statutory declaration of loss, surety and indemnity in the form prescribed by the Company’s constating documents and satisfactory to the Warrant Administrator.
3.4Exchange of Certificates. The Holder may exchange a certificate or certificates representing Warrants for one or more new Warrant certificates representing the same aggregate number of Warrants, at no cost to the Holder.
ARTICLE 4 - ADJUSTMENTS
4.1Adjustment of Subscription and Purchase Rights. From and after the Issue Date, the Exercise Price and the number of Class A Earnout Shares covered by and deliverable upon the exercise of the Warrants will be subject to adjustment in the following events and in the following manner:
(a) | if and whenever at any time prior to the Expiry Date, the Company shall: |
(i) | subdivide, redivide or change its outstanding Class A Earnout Shares into a greater number of Class A Earnout Shares; or |
(ii) | reduce, combine or consolidate its outstanding Class A Earnout Shares into a smaller number of Class A Earnout Shares; |
(any of which is referred to as a “Capital Reorganization”) the number of Class A Earnout Shares obtainable under each Warrant (the “Adjusted Shares”) shall be adjusted immediately after the effective date of such Capital Reorganization, by multiplying the number of Class A Earnout Shares theretofore obtainable on the exercise thereof by a fraction of which the numerator shall be the total number of Class A Earnout Shares outstanding immediately after such date and the denominator shall be the total number of Class A Earnout Shares outstanding immediately prior to such date. Such adjustment shall be made successively whenever any event referred to in this subsection shall occur;
(b) | if and whenever at any time prior to the Expiry Date, the Company shall engage in a Capital Reorganization, the Exercise Price for the aggregate number of Adjusted Shares issuable upon the exercise of each Warrant shall be the Exercise Price and shall not be subject to adjustment; |
(c) | if and whenever at any time prior to the Expiry Date, there is |
(i) | a reclassification of the Class A Earnout Shares; |
(ii) | a capital reorganization of the Company (other than as described in section 4.1(a) and (b)); |
(iii) | a consolidation, amalgamation or merger of the Company with or into any other body corporate, trust, partnership or other entity; or |
(iv) | sale or conveyance of the property and assets of the Company as an entirety or substantially as an entirety to any other body corporate, trust, partnership or other entity, |
(each a “Corporate Event”), if the Holder has not exercised its right of acquisition, as to the effective date of such Corporate Event, upon the exercise of such right thereafter, the Holder shall be entitled to receive and shall accept, in lieu of the number of Class A Earnout Shares such Holder
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would otherwise be entitled to acquire, the number of shares or other securities or property of the Company or of the body corporate, trust, partnership or other entity resulting from such merger, amalgamation, consolidation, or to which such sale or conveyance may be made, as the case may be, that such Holder would have been entitled to receive on such Corporate Event, if, on the record date or the effective date thereof, as the case may be, the Holder had been the registered holder of the number of Class A Earnout Shares issuable upon the conversion, pursuant to the articles of the Company, of the Class A Earnout Shares sought to be acquired by it; and
(d) | if and whenever at any time prior to the Expiry Date, the Company shall distribute to all holders of its Class A Earnout Shares any shares of the Company or evidences of its indebtedness or assets (excluding cash dividends or distributions paid from retained earnings or current year’s or prior year’s earnings of the Company) or rights or warrants to subscribe for or purchase any of its securities (excluding those referred to above) (any of the foregoing, including any right to subscribe for a security in a rights offering, being hereinafter in this subsection 4.1(d) called the “Securities”), then in each such case, the Company shall reserve shares, units or other entitlements of such Securities for distribution to the Holder upon exercise of this Warrant so that, in addition to the Class A Earnout Shares to which such Holder is entitled, such Holder will receive upon such exercise the same amount and kind of such Securities which such Holder would have received if the Holder had, immediately prior to the record date for the distribution of the Securities, exercised this Warrant. |
4.2Determination of Adjustments. The adjustments provided for in this Warrant Certificate are cumulative. The Company shall, promptly after each adjustment made hereunder, provide the Holder with a certificate providing the relevant facts and calculations with respect to any such adjustments. If any questions shall at any time arise with respect to any adjustments to be made hereunder, such question shall be conclusively determined by an independent firm of Chartered Accountants who shall have access to all appropriate records, and such determination shall be binding upon the Company and the Holder.
ARTICLE 5 - MERGER AND SUCCESSORS
5.1Company May Consolidate, etc. on Certain Terms. Nothing herein contained shall prevent any amalgamation or merger of the Company with or into any other corporation or corporations, or a conveyance or transfer of all or substantially all the properties and estates of the Company as an entirety to any corporation lawfully entitled to acquire and operate same; provided however that the corporation formed by such amalgamation or merger or which acquires by conveyance or transfer all or substantially all the properties and estates of the Company as an entirety shall be a corporation organized and existing under the laws of Canada or of the United States of America, or any province, state, district or territory thereof, and shall, simultaneously with such amalgamation, merger, conveyance or transfer, assume the due and punctual performance and observance of all the covenants and conditions hereof to be performed or observed by the Company.
5.2Successor Company Substituted. In case the Company, pursuant to Section 5.1 shall be amalgamated or merged with or into any other corporation or corporations, or shall convey or transfer all or substantially all of its properties and estates as an entirety to any other corporation, the successor corporation formed by such consolidation or amalgamation, or into which the Company shall have been amalgamated or merged or which shall have received a conveyance or transfer as aforesaid, shall succeed to and be substituted for the Company hereunder. Such changes in phraseology and form (but not in substance) may be made in the Warrant Certificate and herein as may be appropriate in view of such amalgamation, merger or transfer.
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ARTICLE 6 - GENERAL
6.1Further Acts. Each of the Company and the Holder shall at the request of the Holder, and at the expense of the Company, execute and deliver any further documents and do all acts and things as the Holder may reasonably require in order to carry out the true intent and meaning of this Warrant Certificate.
6.2Enurement. This Warrant Certificate shall enure to the benefit of and be binding upon the Company and the Holder, and their respective successors and permitted assigns.
6.3Time. Time shall be of the essence herein.
6.4Notices. In case at any time:
(a) | the Company shall pay any dividend payable in shares upon its Class A Earnout Shares or make any distribution to the holders of its Class A Earnout Shares; |
(b) | the Company shall offer for subscription pro rata to the holders of its Class A Earnout Shares any additional shares of any class or other rights; or |
(c) | there shall be a voluntary or involuntary Change of Control, dissolution, liquidation or winding-up of the Company; |
then, and in any one or more of such cases, the Company shall give to the Holder of this Warrant Certificate at least 14 days prior written notice of the date on which the books of the Company shall close or a record shall be taken for such dividend or distribution, or subscription rights, or dissolution, liquidation or winding-up. Each such written notice shall be given by email, first class mail, or registered postage prepaid, addressed to the Holder of this Warrant at the address of such Holder, as shown on the books of the Company.
The Company may change the Exercise Location to another location in British Columbia from time to time upon providing at least 10 days’ notice to the Holder.
6.5Transfer. The Warrants may not be assigned or transferred by the Holder without the prior written consent of the Company, which consent shall not be unreasonably withheld.
6.6Entire Agreement. The Exchanged Warrants constitute all of the warrants to purchase shares of the Company issuable in exchange for the Original Warrants and replace and supersede the Original Warrants in its entirety.
WARRANT EXERCISE SUBSCRIPTION FORM
TO: GENERAL FUSION GROUP LTD. (the “Company”)
The undersigned, being the Holder of the attached Warrant Certificate, hereby subscribes for Class A Earnout shares of the Company upon and subject to the terms and conditions set forth in the Warrant Certificate and tenders payment of the aggregate Exercise Price (US$0.01) for such shares as follows:
☐ | certified cheque, bank draft or solicitors trust cheque in the amount of US$ payable to order of the Warrant Administrator, for the Company, enclosed herewith; |
☐ | Wire transfer of immediately available funds to the Warrant Administrator’s account, for the Company; or |
☐ | Other [Describe] |
Payment, if any, shall be made in accordance with Section 2.3 of Schedule “A” to the Warrant Certificate.
The undersigned represents, warrants and certifies as follows (one (only) of the following must be checked):
☐(A)the undersigned Holder (i) did not acquire the Warrants within the United States and was not a U.S. Person at the time the Warrants were acquired, (ii) is not in the United States, (iii) is not a U.S. Person, (iv) is not exercising the Warrants on behalf of, or for the account or benefit of, a U.S. Person or a person in the United States, (v) did not execute or deliver this Exercise Subscription Form in the United States and (vi) delivery of the underlying Class A Earnout shares will not be to an address in the United States; OR
☐(B)the undersigned Holder is the original purchaser from the Company, pursuant to Regulation D under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”), of the Warrants, and at the time of such acquisition was a U.S. Person or was in the United States (or was acting on behalf of, or for the account or benefit of, a U.S. Person or a person in the United States), and confirms, as of the date of hereof, each of the representations, warranties, certifications and agreements made by it in connection with its acquisition of such Warrants, including, without limitation, its status as an “accredited investor” within the meaning of Rule 501(a) of Regulation D under the U.S. Securities Act, as though such representations, warranties, certifications and agreements were made on the date hereof and in respect of the acquisition of the Class A Earnout shares issuable upon exercise of the Warrants being exercised.; OR
☐(C)an exemption from the registration requirements of the U.S. Securities Act and all applicable state securities laws is available for the exercise of the Warrants, and attached hereto is a written opinion of U.S. counsel or other evidence in form and substance reasonably satisfactory to the Company to such effect.
It is understood that the Company and any warrant agent/administrator may require evidence to verify the foregoing representations.
“United States” and “U.S. Person” have the meanings given to them in Regulation S under the U.S. Securities Act.
Notes:
(1)Certificates will not be registered or delivered to an address in the United States unless Box B or C above is checked and the applicable requirements are complied with. If B or C is checked, a U.S. legend shall be affixed to the Class A Earnout shares for so long as required by applicable requirements of the U.S. Securities Act and applicable state securities laws.
(2)Subject to paragraph (1), if the Warrants have a U.S. legend describing transfer restrictions under the U.S. Securities Act affixed to them, the resulting Class A Earnout shares will have the same U.S. legend affixed to them for so long as required by applicable requirements of the U.S. Securities Act.
(3)If Box B or C above, as applicable, is checked, Holders are encouraged to consult with the Company and any warrant agent/administrator in advance to determine that the legal opinion tendered in connection with the exercise or legending matters will be satisfactory in form and substance to the Company and any warrant agent.
DATED this day of , 20 .
Please print full name in which the certificate representing the Shares are to be issued
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Exhibit 4.25
[LEGENDS TO BE INCLUDED AS PER THE WARRANT ADMINISTRATOR AGREEMENT AND DIRECTION AND RESERVATION ORDER FROM THE COMPANY.]
GENERAL FUSION GROUP LTD.
WARRANT CERTIFICATE
(Warrants to Purchase Class B Earnout Shares)
Warrant Certificate No. [●]
Number of Warrants: [●]
THIS IS TO CERTIFY THAT, for value received, [●]
(the “Holder”), is entitled to subscribe for and purchase fully paid and non-assessable Class B earnout shares in the capital of GENERAL FUSION GROUP LTD. (the “Company”) at a price per share equal to the Exercise Price on or before the Expiry Date, upon and subject to the further terms and conditions set forth in the Terms and Conditions attached hereto as Schedule “A” and incorporated by reference and deemed to be part hereof.
The Warrants may be exercised at the office of Odyssey Trust Company, in its capacity as warrant administrator of the Warrants (the “Warrant Administrator”) at 1310 – 1140 West Pender St., Vancouver BC V6E 4G1, Canada, Attention: Corporate Trust, or such other address as the Company may from time to time in writing direct (the “Exercise Location”).
Except as otherwise indicated, all capitalized terms used herein have the definitions set out in the Terms and Conditions attached hereto as Schedule “A”.
The Warrants, if unexercised, will expire after 4:00 p.m. (Vancouver time) on the Expiry Date.
[Remainder of page intentionally left blank.]
IN WITNESS WHEREOF, the Company has caused this Warrant Certificate to be executed by its duly authorized officer.
DATED: September [●], 2026.
| | GENERAL FUSION GROUP LTD. | |
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| | Per: | |
| | | Authorized Signatory |
Countersigned and Registered by: | | |
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ODYSSEY TRUST COMPANY, as warrant administrator | | |
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Per: | | |
| Authorized Signatory | |
SCHEDULE “A”
WARRANT TERMS AND CONDITIONS
Terms and Conditions attached to the Warrant Certificate issued by General Fusion Group Ltd. to the Holder and dated [●], 2026.
ARTICLE 1 - INTERPRETATION
1.1Definitions. In these Terms and Conditions, unless there is something in the subject matter or context inconsistent therewith, initially capitalized terms will have the meaning as set out herein, as follows:
(a) | “Business Day” means any day except a Saturday or Sunday and legal holidays for Canadian chartered banks in Vancouver, British Columbia; |
(b) | “Change of Control” means (i) a transfer (whether by merger, amalgamation, consolidation, exchange or otherwise), in one transaction or a series of related transactions, to a Person or group of affiliated Persons (other than an underwriter of the Company’s securities), of the Company’s securities if, after such closing, such Person or group of affiliated Persons would hold at least a majority of the total voting power represented by the outstanding voting securities of the Company or such other surviving or resulting entity, (ii) any reorganization, arrangement, merger, amalgamation or other consolidation of the Company, other than a transaction or series of related transactions in which the holders of the voting securities of the Company outstanding immediately prior to such transaction or series of related transactions retain, immediately after such transaction or series of related transactions, at least a majority of the total voting power represented by the outstanding voting securities of the Company or such other surviving or resulting entity, or (iii) a sale, lease, or other disposition of all or substantially all of the assets of the Company; |
(c) | “Class B Earnout Share” means a Class B Earnout share in the capital of the Company; |
(d) | “Common Shares” means Common shares in the capital of the Company (commonly referred to as subordinate voting shares); |
(e) | “Company” means General Fusion Group Ltd. until a successor company shall have become such in the manner prescribed in Article 5, and thereafter “Company” shall mean such successor company; |
(f) | “Exercise Price” means US$0.01 per share; |
(g) | “Expiry Date” means the date that is the earlier of: (i) immediately before a Change of Control; and (ii) November 19, 2028; |
(h) | “Expiry Time” means 4:00 pm (Vancouver time) on the Expiry Date; |
(i) | “herein”, “hereby” and similar expressions refer to these Terms and Conditions as the same may be amended or modified from time to time; and the expression “Article” and “Section” followed by a number refer to the specified Article or Section of these Terms and Conditions; |
(j) | “Holder” means the Person identified as the Holder on the face page of the Warrant Certificate, or its nominee or its assignee; |
(k) | “Issue Date” means , 2026; |
(l) | “Person” means any individual, company, partnership, trustee, trust or unincorporated association, joint venture, syndicate, sole proprietorship, executor, administrator, or other legal representatives, regulatory body, or agency, government, governmental agency, authority or entity, however designated or constituted; |
(m) | “Plan of Arrangement” means the plan of arrangement under section 288 of the Business Corporations Act (British Columbia) resulting in the consummation of the business combination between Spring Valley Acquisition Corp. III, General Fusion Inc. and 1573562 B.C. Ltd. on July 10, 2026; |
(n) | “SAFE Financing” means the simple agreement for future equity financing of General Fusion Inc. carried out between November 19, 2025 and January 4, 2026; |
(o) | “Warrants” means the share purchase warrants entitling the Holder to acquire the number of Class B Earnout Shares set out in the Warrant Certificate at the Exercise Price per share at any time prior to the Expiry Time, subject to such adjustments as are provided for in these Terms and Conditions, and “Warrant” means any one of them; |
(p) | “Warrant Certificate” means the certificate to which these Terms and Conditions are attached and all Schedules attached thereto; |
(q) | Words and phrases defined elsewhere herein or in the Warrant Certificate shall have the particular meanings so ascribed thereto; and |
(r) | Words importing the singular number include the plural and vice versa and words importing the masculine gender include the feminine and neuter genders. |
1.2Applicable Law. The terms of this Warrant Certificate shall be construed exclusively in accordance with the laws of the Province of British Columbia and the laws of Canada applicable therein.
ARTICLE 2 - EXERCISE OF WARRANTS
2.1Warrants Issued in Exchange for Original Warrants. This Warrant Certificate evidences Warrants issued in exchange for warrants to purchase common shares of General Fusion Inc. previously issued by General Fusion Inc. to the Holder in connection with the SAFE Financing (the “Original Warrants”) and the Plan of Arrangement. In addition to these Warrants, and concurrently upon issuance of this Warrant Certificate, in exchange for the Original Warrants, the Holder shall receive warrants to purchase Common Shares (the “Common Warrants”, warrants to purchase Class A Earnout shares in the capital of the Company, and warrants to purchase Class C Earnout shares in the capital of the Company (together with the Warrants and Common Warrants, the “Exchanged Warrants” ).
2.2Exercise. The Holder’s right to subscribe for and purchase Class B Earnout Shares under the Warrants may be exercised, at any time prior to the Expiry Time, by the Holder delivering the Warrant Certificate, along with a duly completed and executed subscription in the form attached hereto along with any other evidence required thereby and payment therefor, to the Warrant Administrator at the Exercise Location in accordance with the terms of this Warrant Certificate. Any such deliveries to the Warrant Administrator at the Exercise Location will constitute delivery to the Company for the purposes of this Warrant Certificate.
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2.3Closing of Share Purchase. The closing (the “Closing”) of each subscription for Class B Earnout Shares made hereunder as a result of the Holder exercising its Warrant rights shall take place at 3 p.m. on the third Business Day after the Warrant Certificate and completed subscription form are delivered to the Warrant Administrator at the Exercise Location. At the Closing, , the Holder shall deliver to the Warrant Administrator at the Exercise Location a certified cheque, bank draft or wire transfer payable to or to the order of the Warrant Administrator, for the benefit of the Company, in the applicable amount for the Class B Earnout Shares subscribed for, in lawful money of the United States of America. Upon the exercise of Warrants, the Shares to be issued pursuant to the Warrants exercised shall be issued or deemed to have been issued and the person or persons to whom such Shares are to be issued shall become or be deemed to have become the holder or holders of record of such Shares on the date that the Warrant Administrator receives valid exercise documents (“Exercise Date”), provided the documents are received in good order, unless the register shall be closed on such date, in which case the Shares subscribed for shall be issued or deemed to have been issued and such person or persons become or be deemed to have become the holder or holders of record of such Shares, on the date on which such register is reopened. It is hereby understood that in order for persons to whom Shares are to be issued to become holders of Shares of record on the Exercise Date, beneficial holders must commence the exercise process sufficiently in advance so that the Warrant Administrator is in receipt of all items of exercise prior to the Expiry Date. Within three Business Days after the Exercise Date with respect to a Warrant, the Warrant Administrator shall use commercially reasonable efforts to cause to be delivered or mailed to the person or persons in whose name or names the Warrant is registered or, as directed on the Exercise Form if so specified in writing by the holder, cause to be delivered to such person or persons at the Exercise Location where the Warrant Certificate was surrendered, the appropriate number of Shares subscribed for, or any other appropriate evidence of the issuance of Shares to such person or persons in respect of Shares issued under the book entry registration system. The amounts held by the Warrant Administrator are at the sole risk of the Company and, without limiting the generality of the foregoing, the Warrant Administrator shall have no responsibility or liability for any diminution of the funds which may result from any deposit made with the Canadian Chartered Banks listed in Schedule 1 of the Bank Act (Canada) (“Approved Bank”) pursuant to this section, including any losses resulting from a default by the Approved Bank or other credit losses (whether or not resulting from such a default). To the extent less than the entire Warrants are exercised, a new warrant certificate in the same form as the Warrant Certificate in respect of the remainder of the Warrants.
2.4No Fractional Shares. The Company shall not be required to issue fractional Class B Earnout Shares or other securities in satisfaction of its obligations hereunder. If any fractional interest in a Class B Earnout Share or other security would, except for the provisions of this section, be deliverable upon the exercise of Warrants, the Company shall instead issue the next lesser whole number of Class B Earnout Shares or other securities and no cash or other consideration will be paid in lieu of fractional shares.
ARTICLE 3 - COVENANTS OF THE COMPANY
3.1Reservation of Shares. The Company will reserve and keep available a sufficient number of Class B Earnout Shares for the purpose of enabling it to satisfy its obligations to issue Class B Earnout Shares upon the exercise of the Warrants.
3.2Fully Paid, Validly Issued Shares. The Company warrants that all Class B Earnout Shares issued upon the exercise of the Warrants will, upon payment of the purchase price therefor by the Holder, be fully paid and non-assessable and duly and validly issued.
3.3Issue in Substitution for Lost Certificate. If the Warrant Certificate becomes mutilated, lost, destroyed or stolen, the Company shall issue and deliver a new Warrant Certificate of like date and tenor as the one mutilated, lost, destroyed or stolen, in exchange for and in place of and upon cancellation of such
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mutilated, lost, destroyed or stolen Warrant Certificate, at no cost to the Holder, upon the Holder delivering to the Company a statutory declaration of loss, surety and indemnity in the form prescribed by the Company’s constating documents and satisfactory to the Warrant Administrator.
3.4Exchange of Certificates. The Holder may exchange a certificate or certificates representing Warrants for one or more new Warrant certificates representing the same aggregate number of Warrants, at no cost to the Holder.
ARTICLE 4 - ADJUSTMENTS
4.1Adjustment of Subscription and Purchase Rights. From and after the Issue Date, the Exercise Price and the number of Class B Earnout Shares covered by and deliverable upon the exercise of the Warrants will be subject to adjustment in the following events and in the following manner:
(a) | if and whenever at any time prior to the Expiry Date, the Company shall: |
(i) | subdivide, redivide or change its outstanding Class B Earnout Shares into a greater number of Class B Earnout Shares; or |
(ii) | reduce, combine or consolidate its outstanding Class B Earnout Shares into a smaller number of Class B Earnout Shares; |
(any of which is referred to as a “Capital Reorganization”) the number of Class B Earnout Shares obtainable under each Warrant (the “Adjusted Shares”) shall be adjusted immediately after the effective date of such Capital Reorganization, by multiplying the number of Class B Earnout Shares theretofore obtainable on the exercise thereof by a fraction of which the numerator shall be the total number of Class B Earnout Shares outstanding immediately after such date and the denominator shall be the total number of Class B Earnout Shares outstanding immediately prior to such date. Such adjustment shall be made successively whenever any event referred to in this subsection shall occur;
(b) | if and whenever at any time prior to the Expiry Date, the Company shall engage in a Capital Reorganization, the Exercise Price for the aggregate number of Adjusted Shares issuable upon the exercise of each Warrant shall be the Exercise Price and shall not be subject to adjustment; |
(c) | if and whenever at any time prior to the Expiry Date, there is |
(i) | a reclassification of the Class B Earnout Shares; |
(ii) | a capital reorganization of the Company (other than as described in section 4.1(a) and (b)); |
(iii) | a consolidation, amalgamation or merger of the Company with or into any other body corporate, trust, partnership or other entity; or |
(iv) | sale or conveyance of the property and assets of the Company as an entirety or substantially as an entirety to any other body corporate, trust, partnership or other entity, |
(each a “Corporate Event”), if the Holder has not exercised its right of acquisition, as to the effective date of such Corporate Event, upon the exercise of such right thereafter, the Holder shall be entitled to receive and shall accept, in lieu of the number of Class B Earnout Shares such Holder
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would otherwise be entitled to acquire, the number of shares or other securities or property of the Company or of the body corporate, trust, partnership or other entity resulting from such merger, amalgamation, consolidation, or to which such sale or conveyance may be made, as the case may be, that such Holder would have been entitled to receive on such Corporate Event, if, on the record date or the effective date thereof, as the case may be, the Holder had been the registered holder of the number of Class B Earnout Shares issuable upon the conversion, pursuant to the articles of the Company, of the Class B Earnout Shares sought to be acquired by it; and
(d) | if and whenever at any time prior to the Expiry Date, the Company shall distribute to all holders of its Class B Earnout Shares any shares of the Company or evidences of its indebtedness or assets (excluding cash dividends or distributions paid from retained earnings or current year’s or prior year’s earnings of the Company) or rights or warrants to subscribe for or purchase any of its securities (excluding those referred to above) (any of the foregoing, including any right to subscribe for a security in a rights offering, being hereinafter in this subsection 4.1(d) called the “Securities”), then in each such case, the Company shall reserve shares, units or other entitlements of such Securities for distribution to the Holder upon exercise of this Warrant so that, in addition to the Class B Earnout Shares to which such Holder is entitled, such Holder will receive upon such exercise the same amount and kind of such Securities which such Holder would have received if the Holder had, immediately prior to the record date for the distribution of the Securities, exercised this Warrant. |
4.2Determination of Adjustments. The adjustments provided for in this Warrant Certificate are cumulative. The Company shall, promptly after each adjustment made hereunder, provide the Holder with a certificate providing the relevant facts and calculations with respect to any such adjustments. If any questions shall at any time arise with respect to any adjustments to be made hereunder, such question shall be conclusively determined by an independent firm of Chartered Accountants who shall have access to all appropriate records, and such determination shall be binding upon the Company and the Holder.
ARTICLE 5 - MERGER AND SUCCESSORS
5.1Company May Consolidate, etc. on Certain Terms. Nothing herein contained shall prevent any amalgamation or merger of the Company with or into any other corporation or corporations, or a conveyance or transfer of all or substantially all the properties and estates of the Company as an entirety to any corporation lawfully entitled to acquire and operate same; provided however that the corporation formed by such amalgamation or merger or which acquires by conveyance or transfer all or substantially all the properties and estates of the Company as an entirety shall be a corporation organized and existing under the laws of Canada or of the United States of America, or any province, state, district or territory thereof, and shall, simultaneously with such amalgamation, merger, conveyance or transfer, assume the due and punctual performance and observance of all the covenants and conditions hereof to be performed or observed by the Company.
5.2Successor Company Substituted. In case the Company, pursuant to Section 5.1 shall be amalgamated or merged with or into any other corporation or corporations, or shall convey or transfer all or substantially all of its properties and estates as an entirety to any other corporation, the successor corporation formed by such consolidation or amalgamation, or into which the Company shall have been amalgamated or merged or which shall have received a conveyance or transfer as aforesaid, shall succeed to and be substituted for the Company hereunder. Such changes in phraseology and form (but not in substance) may be made in the Warrant Certificate and herein as may be appropriate in view of such amalgamation, merger or transfer.
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ARTICLE 6 - GENERAL
6.1Further Acts. Each of the Company and the Holder shall at the request of the Holder, and at the expense of the Company, execute and deliver any further documents and do all acts and things as the Holder may reasonably require in order to carry out the true intent and meaning of this Warrant Certificate.
6.2Enurement. This Warrant Certificate shall enure to the benefit of and be binding upon the Company and the Holder, and their respective successors and permitted assigns.
6.3Time. Time shall be of the essence herein.
6.4Notices. In case at any time:
(a) | the Company shall pay any dividend payable in shares upon its Class B Earnout Shares or make any distribution to the holders of its Class B Earnout Shares; |
(b) | the Company shall offer for subscription pro rata to the holders of its Class B Earnout Shares any additional shares of any class or other rights; or |
(c) | there shall be a voluntary or involuntary Change of Control, dissolution, liquidation or winding-up of the Company; |
then, and in any one or more of such cases, the Company shall give to the Holder of this Warrant Certificate at least 14 days prior written notice of the date on which the books of the Company shall close or a record shall be taken for such dividend or distribution, or subscription rights, or dissolution, liquidation or winding-up. Each such written notice shall be given by email, first class mail, or registered postage prepaid, addressed to the Holder of this Warrant at the address of such Holder, as shown on the books of the Company.
The Company may change the Exercise Location to another location in British Columbia from time to time upon providing at least 10 days’ notice to the Holder.
6.5Transfer. The Warrants may not be assigned or transferred by the Holder without the prior written consent of the Company, which consent shall not be unreasonably withheld.
6.6Entire Agreement. The Exchanged Warrants constitute all of the warrants to purchase shares of the Company issuable in exchange for the Original Warrants and replace and supersede the Original Warrants in its entirety.
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WARRANT EXERCISE SUBSCRIPTION FORM
TO: GENERAL FUSION GROUP LTD. (the “Company”)
The undersigned, being the Holder of the attached Warrant Certificate, hereby subscribes for Class B Earnout shares of the Company upon and subject to the terms and conditions set forth in the Warrant Certificate and tenders payment of the aggregate Exercise Price (US$0.01)for such shares as follows:
◻ | certified cheque, bank draft or solicitors trust cheque in the amount of US$ payable to order of the Warrant Administrator, for the Company, enclosed herewith; |
◻ | Wire transfer of immediately available funds to the Warrant Administrator’s account, for the Company; or |
◻ | Other [Describe] |
Payment, if any, shall be made in accordance with Section 2.3 of Schedule “A” to the Warrant Certificate.
The undersigned represents, warrants and certifies as follows (one (only) of the following must be checked):
◻(A)the undersigned Holder (i) did not acquire the Warrants within the United States and was not a U.S. Person at the time the Warrants were acquired, (ii) is not in the United States, (iii) is not a U.S. Person, (iv) is not exercising the Warrants on behalf of, or for the account or benefit of, a U.S. Person or a person in the United States, (v) did not execute or deliver this Exercise Subscription Form in the United States and (vi) delivery of the underlying Class B Earnout shares will not be to an address in the United States; OR
◻(B)the undersigned Holder is the original purchaser from the Company, pursuant to Regulation D under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”), of the Warrants, and at the time of such acquisition was a U.S. Person or was in the United States (or was acting on behalf of, or for the account or benefit of, a U.S. Person or a person in the United States), and confirms, as of the date of hereof, each of the representations, warranties, certifications and agreements made by it in connection with its acquisition of such Warrants, including, without limitation, its status as an “accredited investor” within the meaning of Rule 501(a) of Regulation D under the U.S. Securities Act, as though such representations, warranties, certifications and agreements were made on the date hereof and in respect of the acquisition of the Class B Earnout shares issuable upon exercise of the Warrants being exercised.; OR
◻(C)an exemption from the registration requirements of the U.S. Securities Act and all applicable state securities laws is available for the exercise of the Warrants, and attached hereto is a written opinion of U.S. counsel or other evidence in form and substance reasonably satisfactory to the Company to such effect.
It is understood that the Company and any warrant agent/administrator may require evidence to verify the foregoing representations.
“United States” and “U.S. Person” have the meanings given to them in Regulation S under the U.S. Securities Act.
Notes:
(1)Certificates will not be registered or delivered to an address in the United States unless Box B or C above is checked and the applicable requirements are complied with. If B or C is checked, a U.S. legend shall be affixed to the Class B Earnout shares for so long as required by applicable requirements of the U.S. Securities Act and applicable state securities laws.
(2)Subject to paragraph (1), if the Warrants have a U.S. legend describing transfer restrictions under the U.S. Securities Act affixed to them, the resulting Class B Earnout shares will have the same U.S. legend affixed to them for so long as required by applicable requirements of the U.S. Securities Act.
(3)If Box B or C above, as applicable, is checked, Holders are encouraged to consult with the Company and any warrant agent/administrator in advance to determine that the legal opinion tendered in connection with the exercise or legending matters will be satisfactory in form and substance to the Company and any warrant agent.
DATED this day of , 20 .
Please print full name in which the certificate representing the Shares are to be issued
Name, Address and Signature of the Holder:
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Exhibit 4.26
[LEGENDS TO BE INCLUDED AS PER THE WARRANT ADMINISTRATOR AGREEMENT AND DIRECTION AND RESERVATION ORDER FROM THE COMPANY.]
GENERAL FUSION GROUP LTD.
WARRANT CERTIFICATE
(Warrants to Purchase Class C Earnout Shares)
Warrant Certificate No. [●]
Number of Warrants: [●]
THIS IS TO CERTIFY THAT, for value received, [●]
(the “Holder”), is entitled to subscribe for and purchase fully paid and non-assessable Class C earnout shares in the capital of GENERAL FUSION GROUP LTD. (the “Company”) at a price per share equal to the Exercise Price on or before the Expiry Date, upon and subject to the further terms and conditions set forth in the Terms and Conditions attached hereto as Schedule “A” and incorporated by reference and deemed to be part hereof.
The Warrants may be exercised at the office of Odyssey Trust Company, in its capacity as warrant administrator of the Warrants (the “Warrant Administrator”) at 1310 – 1140 West Pender St., Vancouver BC V6E 4G1, Canada, Attention: Corporate Trust, or such other address as the Company may from time to time in writing direct (the “Exercise Location”).
Except as otherwise indicated, all capitalized terms used herein have the definitions set out in the Terms and Conditions attached hereto as Schedule “A”.
The Warrants, if unexercised, will expire after 4:00 p.m. (Vancouver time) on the Expiry Date.
[Remainder of page intentionally left blank.]
IN WITNESS WHEREOF, the Company has caused this Warrant Certificate to be executed by its duly authorized officer.
DATED: September [●], 2026. | | ||
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| GENERAL FUSION GROUP LTD. | ||
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| Per: | | |
| | Authorized Signatory | |
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Countersigned and Registered by: | | ||
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ODYSSEY TRUST COMPANY, as warrant administrator | | ||
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Per: | | | |
| Authorized Signatory | | |
SCHEDULE “A”
WARRANT TERMS AND CONDITIONS
Terms and Conditions attached to the Warrant Certificate issued by General Fusion Group Ltd. to the Holder and dated [•], 2026.
ARTICLE 1 - INTERPRETATION
1.1Definitions. In these Terms and Conditions, unless there is something in the subject matter or context inconsistent therewith, initially capitalized terms will have the meaning as set out herein, as follows:
(a) | “Business Day” means any day except a Saturday or Sunday and legal holidays for Canadian chartered banks in Vancouver, British Columbia; |
(b) | “Change of Control” means (i) a transfer (whether by merger, amalgamation, consolidation, exchange or otherwise), in one transaction or a series of related transactions, to a Person or group of affiliated Persons (other than an underwriter of the Company’s securities), of the Company’s securities if, after such closing, such Person or group of affiliated Persons would hold at least a majority of the total voting power represented by the outstanding voting securities of the Company or such other surviving or resulting entity, (ii) any reorganization, arrangement, merger, amalgamation or other consolidation of the Company, other than a transaction or series of related transactions in which the holders of the voting securities of the Company outstanding immediately prior to such transaction or series of related transactions retain, immediately after such transaction or series of related transactions, at least a majority of the total voting power represented by the outstanding voting securities of the Company or such other surviving or resulting entity, or (iii) a sale, lease, or other disposition of all or substantially all of the assets of the Company; |
(c) | “Class C Earnout Share” means a Class C Earnout share in the capital of the Company; |
(d) | “Common Shares” means Common shares in the capital of the Company (commonly referred to as subordinate voting shares); |
(e) | “Company” means General Fusion Group Ltd. until a successor company shall have become such in the manner prescribed in Article 5, and thereafter “Company” shall mean such successor company; |
(f) | “Exercise Price” means US$0.01 per share; |
(g) | “Expiry Date” means the date that is the earlier of: (i) immediately before a Change of Control; and (ii) November 19, 2028; |
(h) | “Expiry Time” means 4:00 pm (Vancouver time) on the Expiry Date; |
(i) | “herein”, “hereby” and similar expressions refer to these Terms and Conditions as the same may be amended or modified from time to time; and the expression “Article” and “Section” followed by a number refer to the specified Article or Section of these Terms and Conditions; |
(j) | “Holder” means the Person identified as the Holder on the face page of the Warrant Certificate, or its nominee or its assignee; |
(k) | “Issue Date” means , 2026; |
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(l) | “Person” means any individual, company, partnership, trustee, trust or unincorporated association, joint venture, syndicate, sole proprietorship, executor, administrator, or other legal representatives, regulatory body, or agency, government, governmental agency, authority or entity, however designated or constituted; |
(m) | “Plan of Arrangement” means the plan of arrangement under section 288 of the Business Corporations Act (British Columbia) resulting in the consummation of the business combination between Spring Valley Acquisition Corp. III, General Fusion Inc. and 1573562 B.C. Ltd. on July 10, 2026; |
(n) | “SAFE Financing” means the simple agreement for future equity financing of General Fusion Inc. carried out between November 19, 2025 and January 4, 2026; |
(o) | “Warrants” means the share purchase warrants entitling the Holder to acquire the number of Class C Earnout Shares set out in the Warrant Certificate at the Exercise Price per share at any time prior to the Expiry Time, subject to such adjustments as are provided for in these Terms and Conditions, and “Warrant” means any one of them; |
(p) | “Warrant Certificate” means the certificate to which these Terms and Conditions are attached and all Schedules attached thereto; |
(q) | Words and phrases defined elsewhere herein or in the Warrant Certificate shall have the particular meanings so ascribed thereto; and |
(r) | Words importing the singular number include the plural and vice versa and words importing the masculine gender include the feminine and neuter genders. |
1.2Applicable Law. The terms of this Warrant Certificate shall be construed exclusively in accordance with the laws of the Province of British Columbia and the laws of Canada applicable therein.
ARTICLE 2 - EXERCISE OF WARRANTS
2.1Warrants Issued in Exchange for Original Warrants. This Warrant Certificate evidences Warrants issued in exchange for warrants to purchase common shares of General Fusion Inc. previously issued by General Fusion Inc. to the Holder in connection with the SAFE Financing (the “Original Warrants”) and the Plan of Arrangement. In addition to these Warrants, and concurrently upon issuance of this Warrant Certificate, in exchange for the Original Warrants, the Holder shall receive warrants to purchase Common Shares (the “Common Warrants”, warrants to purchase Class A Earnout shares in the capital of the Company, and warrants to purchase Class B Earnout shares in the capital of the Company (together with the Warrants and Common Warrants, the “Exchanged Warrants” ).
2.2Exercise. The Holder’s right to subscribe for and purchase Class C Earnout Shares under the Warrants may be exercised, at any time prior to the Expiry Time, by the Holder delivering the Warrant Certificate, along with a duly completed and executed subscription in the form attached hereto along with any other evidence required thereby and payment therefor, to the Warrant Administrator at the Exercise Location in accordance with the terms of this Warrant Certificate. Any such deliveries to the Warrant Administrator at the Exercise Location will constitute delivery to the Company for the purposes of this Warrant Certificate.
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2.3Closing of Share Purchase. The closing (the “Closing”) of each subscription for Class C Earnout Shares made hereunder as a result of the Holder exercising its Warrant rights shall take place at 3 p.m. on the third Business Day after the Warrant Certificate and completed subscription form are delivered to the Warrant Administrator at the Exercise Location. At the Closing, , the Holder shall deliver to the Warrant Administrator at the Exercise Location a certified cheque, bank draft or wire transfer payable to or to the order of the Warrant Administrator, for the benefit of the Company, in the applicable amount for the Class C Earnout Shares subscribed for, in lawful money of the United States of America. Upon the exercise of Warrants, the Shares to be issued pursuant to the Warrants exercised shall be issued or deemed to have been issued and the person or persons to whom such Shares are to be issued shall become or be deemed to have become the holder or holders of record of such Shares on the date that the Warrant Administrator receives valid exercise documents (“Exercise Date”), provided the documents are received in good order, unless the register shall be closed on such date, in which case the Shares subscribed for shall be issued or deemed to have been issued and such person or persons become or be deemed to have become the holder or holders of record of such Shares, on the date on which such register is reopened. It is hereby understood that in order for persons to whom Shares are to be issued to become holders of Shares of record on the Exercise Date, beneficial holders must commence the exercise process sufficiently in advance so that the Warrant Administrator is in receipt of all items of exercise prior to the Expiry Date. Within three Business Days after the Exercise Date with respect to a Warrant, the Warrant Administrator shall use commercially reasonable efforts to cause to be delivered or mailed to the person or persons in whose name or names the Warrant is registered or, as directed on the Exercise Form if so specified in writing by the holder, cause to be delivered to such person or persons at the Exercise Location where the Warrant Certificate was surrendered, the appropriate number of Shares subscribed for, or any other appropriate evidence of the issuance of Shares to such person or persons in respect of Shares issued under the book entry registration system. The amounts held by the Warrant Administrator are at the sole risk of the Company and, without limiting the generality of the foregoing, the Warrant Administrator shall have no responsibility or liability for any diminution of the funds which may result from any deposit made with the Canadian Chartered Banks listed in Schedule 1 of the Bank Act (Canada) (“Approved Bank”) pursuant to this section, including any losses resulting from a default by the Approved Bank or other credit losses (whether or not resulting from such a default). To the extent less than the entire Warrants are exercised, a new warrant certificate in the same form as the Warrant Certificate in respect of the remainder of the Warrants.
2.4No Fractional Shares. The Company shall not be required to issue fractional Class C Earnout Shares or other securities in satisfaction of its obligations hereunder. If any fractional interest in a Class C Earnout Share or other security would, except for the provisions of this section, be deliverable upon the exercise of Warrants, the Company shall instead issue the next lesser whole number of Class C Earnout Shares or other securities and no cash or other consideration will be paid in lieu of fractional shares.
ARTICLE 3 - COVENANTS OF THE COMPANY
3.1Reservation of Shares. The Company will reserve and keep available a sufficient number of Class C Earnout Shares for the purpose of enabling it to satisfy its obligations to issue Class C Earnout Shares upon the exercise of the Warrants.
3.2Fully Paid, Validly Issued Shares. The Company warrants that all Class C Earnout Shares issued upon the exercise of the Warrants will, upon payment of the purchase price therefor by the Holder, be fully paid and non-assessable and duly and validly issued.
3.3Issue in Substitution for Lost Certificate. If the Warrant Certificate becomes mutilated, lost, destroyed or stolen, the Company shall issue and deliver a new Warrant Certificate of like date and tenor as the one mutilated, lost, destroyed or stolen, in exchange for and in place of and upon cancellation of such
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mutilated, lost, destroyed or stolen Warrant Certificate, at no cost to the Holder, upon the Holder delivering to the Company a statutory declaration of loss, surety and indemnity in the form prescribed by the Company’s constating documents and satisfactory to the Warrant Administrator.
3.4Exchange of Certificates. The Holder may exchange a certificate or certificates representing Warrants for one or more new Warrant certificates representing the same aggregate number of Warrants, at no cost to the Holder.
ARTICLE 4 - ADJUSTMENTS
4.1Adjustment of Subscription and Purchase Rights. From and after the Issue Date, the Exercise Price and the number of Class C Earnout Shares covered by and deliverable upon the exercise of the Warrants will be subject to adjustment in the following events and in the following manner:
(a) | if and whenever at any time prior to the Expiry Date, the Company shall: |
(i) | subdivide, redivide or change its outstanding Class C Earnout Shares into a greater number of Class C Earnout Shares; or |
(ii) | reduce, combine or consolidate its outstanding Class C Earnout Shares into a smaller number of Class C Earnout Shares; |
(any of which is referred to as a “Capital Reorganization”) the number of Class C Earnout Shares obtainable under each Warrant (the “Adjusted Shares”) shall be adjusted immediately after the effective date of such Capital Reorganization, by multiplying the number of Class C Earnout Shares theretofore obtainable on the exercise thereof by a fraction of which the numerator shall be the total number of Class C Earnout Shares outstanding immediately after such date and the denominator shall be the total number of Class C Earnout Shares outstanding immediately prior to such date. Such adjustment shall be made successively whenever any event referred to in this subsection shall occur;
(b) | if and whenever at any time prior to the Expiry Date, the Company shall engage in a Capital Reorganization, the Exercise Price for the aggregate number of Adjusted Shares issuable upon the exercise of each Warrant shall be the Exercise Price and shall not be subject to adjustment; |
(c) | if and whenever at any time prior to the Expiry Date, there is |
(i) | a reclassification of the Class C Earnout Shares; |
(ii) | a capital reorganization of the Company (other than as described in section 4.1(a) and (b)); |
(iii) | a consolidation, amalgamation or merger of the Company with or into any other body corporate, trust, partnership or other entity; or |
(iv) | sale or conveyance of the property and assets of the Company as an entirety or substantially as an entirety to any other body corporate, trust, partnership or other entity, |
(each a “Corporate Event”), if the Holder has not exercised its right of acquisition, as to the effective date of such Corporate Event, upon the exercise of such right thereafter, the Holder shall be entitled to receive and shall accept, in lieu of the number of Class C Earnout Shares such Holder
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would otherwise be entitled to acquire, the number of shares or other securities or property of the Company or of the body corporate, trust, partnership or other entity resulting from such merger, amalgamation, consolidation, or to which such sale or conveyance may be made, as the case may be, that such Holder would have been entitled to receive on such Corporate Event, if, on the record date or the effective date thereof, as the case may be, the Holder had been the registered holder of the number of Class C Earnout Shares issuable upon the conversion, pursuant to the articles of the Company, of the Class C Earnout Shares sought to be acquired by it; and
(d) | if and whenever at any time prior to the Expiry Date, the Company shall distribute to all holders of its Class C Earnout Shares any shares of the Company or evidences of its indebtedness or assets (excluding cash dividends or distributions paid from retained earnings or current year’s or prior year’s earnings of the Company) or rights or warrants to subscribe for or purchase any of its securities (excluding those referred to above) (any of the foregoing, including any right to subscribe for a security in a rights offering, being hereinafter in this subsection 4.1(d) called the “Securities”), then in each such case, the Company shall reserve shares, units or other entitlements of such Securities for distribution to the Holder upon exercise of this Warrant so that, in addition to the Class C Earnout Shares to which such Holder is entitled, such Holder will receive upon such exercise the same amount and kind of such Securities which such Holder would have received if the Holder had, immediately prior to the record date for the distribution of the Securities, exercised this Warrant. |
4.2Determination of Adjustments. The adjustments provided for in this Warrant Certificate are cumulative. The Company shall, promptly after each adjustment made hereunder, provide the Holder with a certificate providing the relevant facts and calculations with respect to any such adjustments. If any questions shall at any time arise with respect to any adjustments to be made hereunder, such question shall be conclusively determined by an independent firm of Chartered Accountants who shall have access to all appropriate records, and such determination shall be binding upon the Company and the Holder.
ARTICLE 5 - MERGER AND SUCCESSORS
5.1Company May Consolidate, etc. on Certain Terms. Nothing herein contained shall prevent any amalgamation or merger of the Company with or into any other corporation or corporations, or a conveyance or transfer of all or substantially all the properties and estates of the Company as an entirety to any corporation lawfully entitled to acquire and operate same; provided however that the corporation formed by such amalgamation or merger or which acquires by conveyance or transfer all or substantially all the properties and estates of the Company as an entirety shall be a corporation organized and existing under the laws of Canada or of the United States of America, or any province, state, district or territory thereof, and shall, simultaneously with such amalgamation, merger, conveyance or transfer, assume the due and punctual performance and observance of all the covenants and conditions hereof to be performed or observed by the Company.
5.2Successor Company Substituted. In case the Company, pursuant to Section 5.1 shall be amalgamated or merged with or into any other corporation or corporations, or shall convey or transfer all or substantially all of its properties and estates as an entirety to any other corporation, the successor corporation formed by such consolidation or amalgamation, or into which the Company shall have been amalgamated or merged or which shall have received a conveyance or transfer as aforesaid, shall succeed to and be substituted for the Company hereunder. Such changes in phraseology and form (but not in substance) may be made in the Warrant Certificate and herein as may be appropriate in view of such amalgamation, merger or transfer.
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ARTICLE 6 - GENERAL
6.1Further Acts. Each of the Company and the Holder shall at the request of the Holder, and at the expense of the Company, execute and deliver any further documents and do all acts and things as the Holder may reasonably require in order to carry out the true intent and meaning of this Warrant Certificate.
6.2Enurement. This Warrant Certificate shall enure to the benefit of and be binding upon the Company and the Holder, and their respective successors and permitted assigns.
6.3Time. Time shall be of the essence herein.
6.4Notices. In case at any time:
(a) | the Company shall pay any dividend payable in shares upon its Class C Earnout Shares or make any distribution to the holders of its Class C Earnout Shares; |
(b) | the Company shall offer for subscription pro rata to the holders of its Class C Earnout Shares any additional shares of any class or other rights; or |
(c) | there shall be a voluntary or involuntary Change of Control, dissolution, liquidation or winding-up of the Company; |
then, and in any one or more of such cases, the Company shall give to the Holder of this Warrant Certificate at least 14 days prior written notice of the date on which the books of the Company shall close or a record shall be taken for such dividend or distribution, or subscription rights, or dissolution, liquidation or winding-up. Each such written notice shall be given by email, first class mail, or registered postage prepaid, addressed to the Holder of this Warrant at the address of such Holder, as shown on the books of the Company.
The Company may change the Exercise Location to another location in British Columbia from time to time upon providing at least 10 days’ notice to the Holder.
6.5Transfer. The Warrants may not be assigned or transferred by the Holder without the prior written consent of the Company, which consent shall not be unreasonably withheld.
6.6Entire Agreement. The Exchanged Warrants constitute all of the warrants to purchase shares of the Company issuable in exchange for the Original Warrants and replace and supersede the Original Warrants in its entirety.
WARRANT EXERCISE SUBSCRIPTION FORM
TO: GENERAL FUSION GROUP LTD. (the “Company”)
The undersigned, being the Holder of the attached Warrant Certificate, hereby subscribes for Class C Earnout shares of the Company upon and subject to the terms and conditions set forth in the Warrant Certificate and tenders payment of the aggregate Exercise Price (US$0.01)for such shares as follows:
☐ | certified cheque, bank draft or solicitors trust cheque in the amount of US$ payable to order of the Warrant Administrator, for the Company, enclosed herewith; |
☐ | Wire transfer of immediately available funds to the Warrant Administrator’s account, for the Company; or |
☐ | Other [Describe] |
Payment, if any, shall be made in accordance with Section 2.3 of Schedule “A” to the Warrant Certificate.
The undersigned represents, warrants and certifies as follows (one (only) of the following must be checked):
☐(A)the undersigned Holder (i) did not acquire the Warrants within the United States and was not a U.S. Person at the time the Warrants were acquired, (ii) is not in the United States, (iii) is not a U.S. Person, (iv) is not exercising the Warrants on behalf of, or for the account or benefit of, a U.S. Person or a person in the United States, (v) did not execute or deliver this Exercise Subscription Form in the United States and (vi) delivery of the underlying Class C Earnout shares will not be to an address in the United States; OR
☐(B)the undersigned Holder is the original purchaser from the Company, pursuant to Regulation D under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”), of the Warrants, and at the time of such acquisition was a U.S. Person or was in the United States (or was acting on behalf of, or for the account or benefit of, a U.S. Person or a person in the United States), and confirms, as of the date of hereof, each of the representations, warranties, certifications and agreements made by it in connection with its acquisition of such Warrants, including, without limitation, its status as an “accredited investor” within the meaning of Rule 501(a) of Regulation D under the U.S. Securities Act, as though such representations, warranties, certifications and agreements were made on the date hereof and in respect of the acquisition of the Class C Earnout shares issuable upon exercise of the Warrants being exercised.; OR
☐(C)an exemption from the registration requirements of the U.S. Securities Act and all applicable state securities laws is available for the exercise of the Warrants, and attached hereto is a written opinion of U.S. counsel or other evidence in form and substance reasonably satisfactory to the Company to such effect.
It is understood that the Company and any warrant agent/administrator may require evidence to verify the foregoing representations.
“United States” and “U.S. Person” have the meanings given to them in Regulation S under the U.S. Securities Act.
Notes:
(1)Certificates will not be registered or delivered to an address in the United States unless Box B or C above is checked and the applicable requirements are complied with. If B or C is checked, a U.S. legend shall be affixed to the Class C Earnout shares for so long as required by applicable requirements of the U.S. Securities Act and applicable state securities laws.
(2)Subject to paragraph (1), if the Warrants have a U.S. legend describing transfer restrictions under the U.S. Securities Act affixed to them, the resulting Class C Earnout shares will have the same U.S. legend affixed to them for so long as required by applicable requirements of the U.S. Securities Act.
(3)If Box B or C above, as applicable, is checked, Holders are encouraged to consult with the Company and any warrant agent/administrator in advance to determine that the legal opinion tendered in connection with the exercise or legending matters will be satisfactory in form and substance to the Company and any warrant agent.
DATED this day of , 20 .
Please print full name in which the certificate representing the Shares are to be issued
Name, Address and Signature of the Holder:
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Exhibit 4.27
NEITHER THIS SECURITY NOR THE SECURITIES INTO WHICH THIS SECURITY IS CONVERTIBLE HAS BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS. THIS SECURITY AND THE SECURITIES ISSUABLE UPON CONVERSION OF THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT WITH A REGISTERED BROKER-DEALER OR OTHER LOAN WITH A FINANCIAL INSTITUTION THAT IS AN “ACCREDITED INVESTOR” AS DEFINED IN RULE 501(a) UNDER THE SECURITIES ACT OR OTHER LOAN SECURED BY SUCH SECURITIES.
General Fusion Group Ltd.
COMMON SHARE PURCHASE WARRANT
Warrant Shares: [_______]Initial Exercise Date: [●], [●]
THIS COMMON SHARE PURCHASE WARRANT (this “Warrant”) certifies that, for value received, [_____________] or its assigns (the “Holder”) is entitled, upon the terms and subject to the limitations on exercise and the conditions hereinafter set forth, at any time on or after the date hereof (the “Initial Exercise Date”) and on or prior to 5:00 p.m. (New York City time) on [●], [●] (the “Termination Date”) but not thereafter, to subscribe for and purchase from General Fusion Group Ltd., a British Columbia corporation (the “Company”), up to [______] Common shares (as subject to adjustment hereunder, the “Warrant Shares”) without par value, of the Company (the “Common Share”). The purchase price of one Common Share under this Warrant shall be equal to the Exercise Price, as defined in Section 2(b).
Section 1. Definitions. Capitalized terms used and not otherwise defined herein shall have the meanings set forth in Schedule A hereto.
Section 2. Exercise.
(a) | Exercise of Warrant. Exercise of the purchase rights represented by this Warrant may be made, in whole or in part, at any time or times on or after the Initial Exercise Date and on or before the Termination Date by delivery to the Company (or such other office or agency that the Company may designate by notice in writing to the registered Holder at the address of the Holder appearing on the books of the Company), as applicable, of a duly executed PDF copy submitted by e-mail (or e-mail attachment) of the Notice of Exercise in the form annexed hereto (the “Notice of Exercise”). Not later than the number of Trading Days comprising the Standard Settlement Period (as defined in Section 2(d)(i) herein) following the date of exercise as aforesaid, the Holder shall deliver to the Company the aggregate Exercise Price for the shares specified in the applicable Notice of Exercise by wire transfer or cashier’s check drawn on a United States bank unless the cashless exercise procedure specified in Section 2(c) below is available and specified in the applicable Notice of Exercise. No ink-original Notice of Exercise shall be required, nor shall any medallion guarantee (or other type of guarantee or notarization) of any Notice of Exercise be required. Notwithstanding anything herein to the contrary, the Holder shall not be required to physically surrender this Warrant to the Company until the Holder has purchased all of the Warrant Shares available hereunder and the Warrant has been exercised in full, in which case, the Holder shall surrender this Warrant to the Company for cancellation within three (3) Trading Days of the date on which the final Notice of Exercise is delivered to the Company. Partial exercises of this Warrant resulting in purchases of a portion of the total number of Warrant Shares available hereunder shall have the effect of lowering the outstanding number of Warrant Shares purchasable hereunder in an amount equal to the applicable number of Warrant Shares purchased. The Holder and the Company shall maintain records showing the number of Warrant Shares purchased and the date of such purchases. The Company shall deliver any objection to any Notice of Exercise within one (1) Business Day of receipt of such notice. The Holder and any assignee, by acceptance of this Warrant, acknowledge and agree that, |
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by reason of the provisions of this paragraph, following the purchase of a portion of the Warrant Shares hereunder, the number of Warrant Shares available for purchase hereunder at any given time may be less than the amount stated on the face hereof.
(b) | Exercise Price. The exercise price per Common Share under this Warrant shall be $12.00, subject to adjustment hereunder (the “Exercise Price”). |
(c) | Cashless Exercise. If at any time after the six (6) month anniversary of the Closing Date, (x) the Warrants Shares issuable upon exercise of this Warrant would be (i) “restricted securities” as defined in Rule 144 or (ii) the Holder is an Affiliate of the Company and (y) there is no effective registration statement registering, or the prospectus contained therein is not available for the resale of the Warrant Shares by the Holder, then this Warrant may also be exercised, in whole or in part, at such time by means of a “cashless exercise” in which the Holder shall be entitled to receive a number of Warrant Shares equal to the quotient obtained by dividing ((A-B) multiplied by (X)) by (A), where: |
(A)=as applicable: (i) the VWAP on the Trading Day immediately preceding the date of the applicable Notice of Exercise if such Notice of Exercise is (1) both executed and delivered pursuant to Section 2(a) hereof on a day that is not a Trading Day, (2) both executed and delivered pursuant to Section 2(a) hereof on a Trading Day prior to the opening of “regular trading hours” (as defined in Rule 600(b) of Regulation NMS promulgated under the federal securities laws) on such Trading Day or (3) executed during “regular trading hours” on a Trading Day and is delivered within two (2) hours thereafter (including until two (2) hours after the close of “regular trading hours” on a Trading Day), or (ii) the VWAP on the date of the applicable Notice of Exercise if the date of such Notice of Exercise is a Trading Day and such Notice of Exercise is both executed and delivered pursuant to Section 2(a) hereof after the close of “regular trading hours” on such Trading Day;
(B)=the Exercise Price of this Warrant, as adjusted hereunder; and
(X)=the number of Warrant Shares that would be issuable upon exercise of this Warrant in accordance with the terms of this Warrant if such exercise were by means of a cash exercise rather than a cashless exercise.
If Warrant Shares are issued in such a cashless exercise, the parties acknowledge and agree that in accordance with Section 3(a)(9) of the Securities Act, the Warrant Shares shall take on the characteristics of the Warrants being exercised, and the holding period of the Warrant Shares being issued may be tacked on to the holding period of this Warrant. The Company agrees not to take any position contrary to this Section 2(c).
Notwithstanding anything herein to the contrary, on the Termination Date, this Warrant shall be automatically exercised via cashless exercise pursuant to this Section 2(c).
(d) | Mechanics of Exercise. |
(i) | Delivery of Warrant Shares Upon Exercise. The Company shall cause the Warrant Shares purchased hereunder to be transmitted by the Transfer Agent to the Holder by crediting the account of the Holder’s or its designee’s balance account with The Depository Trust Company through its Deposit or Withdrawal at Custodian system if the Company is then a participant in such system and there is an effective registration statement permitting the issuance of the Warrant Shares to or resale of the Warrant Shares by the Holder, and otherwise by physical delivery of a certificate, (or reasonable evidence of issuance by book entry of ownership of the Warrant Shares) registered in the Company’s share register in the name of the Holder or its designee, for the number of Warrant Shares to which the Holder is entitled pursuant to such exercise to the address specified by the Holder in the Notice of Exercise by the date that is the later of (i) the Standard Settlement Period after the delivery to the Company of the Notice of Exercise, and (ii) one (1) Trading Day after delivery of the aggregate Exercise Price to the Company (such date, the “Warrant Share Delivery Date”); provided, however, in any event, the Company shall not be obligated to deliver Warrant Shares until it has received the aggregate Exercise Price therefor. |
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Upon delivery of the Notice of Exercise, the Holder shall be deemed for all corporate purposes to have become the holder of record of the Warrant Shares with respect to which this Warrant has been exercised, irrespective of the date of delivery of the Warrant Shares, provided that payment of the aggregate Exercise Price (other than in the case of a cashless exercise) is received no later than the number of Trading Days comprising the Standard Settlement Period following delivery of the Notice of Exercise. The Company agrees to maintain a transfer agent that is a participant in the FAST program so long as this Warrant remains outstanding and exercisable. As used herein, “Standard Settlement Period” means the standard settlement period, expressed in a number of Trading Days, on the Company’s primary Trading Market with respect to the Common Share as in effect on the date of delivery of the Notice of Exercise.
(ii) | Delivery of New Warrants Upon Exercise. If this Warrant shall have been exercised in part, the Company shall, at the request of a Holder and upon surrender of this Warrant certificate, at the time of delivery of the Warrant Shares, deliver to the Holder a new Warrant evidencing the rights of the Holder to purchase the unpurchased Warrant Shares called for by this Warrant, which new Warrant shall in all other respects be identical with this Warrant. |
(iii) | Rescission Rights. If the Company fails to cause the Transfer Agent to transmit to the Holder the Warrant Shares pursuant to Section 2(d)(i) by the Warrant Share Delivery Date (subject to receipt of the aggregate Exercise Price for the applicable exercise (other than in the case of a cashless exercise)), then the Holder will have the right to rescind such exercise prior to the delivery of the Warrant Shares. |
(iv) | No Fractional Shares or Scrip. No fractional shares or scrip representing fractional shares shall be issued upon the exercise of this Warrant. As to any fraction of a share which the Holder would otherwise be entitled to purchase upon such exercise, the Company shall, at its election, either pay a cash adjustment in respect of such final fraction in an amount equal to such fraction multiplied by the Exercise Price or round up to the next whole share. |
(v) | Charges, Taxes and Expenses. Issuance of Warrant Shares shall be made without charge to the Holder for any issue or transfer tax or other incidental expense in respect of the issuance of such Warrant Shares, all of which taxes and expenses shall be paid by the Company, and such Warrant Shares shall be issued in the name of the Holder or in such name or names as may be directed by the Holder; provided, however, that, in the event that Warrant Shares are to be issued in a name other than the name of the Holder, this Warrant when surrendered for exercise shall be accompanied by the Assignment Form attached hereto duly executed by the Holder and the Company may require, as a condition thereto, the payment of a sum sufficient to reimburse it for any transfer tax incidental thereto. The Company shall pay all Transfer Agent fees required for same-day processing of any Notice of Exercise and all fees to the Depository Trust Company (or another established clearing corporation performing similar functions) required for same-day electronic delivery of the Warrant Shares pursuant to the terms of this Warrant. |
(vi) | Closing of Books. The Company will not close its stockholder books or records in any manner intended to prevent the timely exercise of this Warrant, pursuant to the terms hereof. |
(e) | Holder’s Exercise Limitations. The Holder may notify the Company in writing in the event it elects to be subject to the provisions contained in this Section 2(e); however, the Holder shall not be subject to this Section 2(e) unless he, she or it makes such election. If the election is made, the Company shall not effect any exercise of this Warrant, and a Holder shall not have the right to exercise any portion of this Warrant, pursuant to Section 2 or otherwise, to the extent that after giving effect to such issuance after exercise as set forth on the applicable Notice of Exercise, the Holder (together with the Holder’s Affiliates, and any Persons acting as a group together with the Holder or any of the Holder’s Affiliates (such Persons, “Attribution Parties”)) would beneficially own in excess of 4.9%, 9.9%, 19.9% (or such other amount as the Holder may specify) (the “Beneficial Ownership Limitation”). For purposes of the foregoing sentence, the number of Common Shares beneficially owned by the Holder, its Affiliates and Attribution Parties shall include the number of Common Shares issuable upon exercise of this Warrant with respect to which such determination is being made, but shall exclude the number of Common Shares which would be issuable upon (i) exercise of the remaining, nonexercised portion of this Warrant beneficially owned by the Holder or any of its |
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Affiliates or Attribution Parties and (ii) exercise or conversion of the unexercised or unconverted portion of any other securities of the Company (including, without limitation, any other Common Share Equivalents) subject to a limitation on conversion or exercise analogous to the limitation contained herein beneficially owned by the Holder or any of its Affiliates or Attribution Parties. Except as set forth in the preceding sentence, for purposes of this Section 2(e), beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder, it being acknowledged by the Holder that the Company is not representing to the Holder that such calculation is in compliance with Section 13(d) of the Exchange Act and the Holder is solely responsible for any schedules required to be filed in accordance therewith. To the extent that the limitation contained in this Section 2(e) applies, the determination of whether this Warrant is exercisable (in relation to other securities owned by the Holder together with any Affiliates and Attribution Parties) and, of which portion of this Warrant is exercisable up to the Beneficial Ownership Limitation shall be in the sole discretion of the Holder, and the submission of a Notice of Exercise shall be deemed to be the Holder’s good faith determination of whether this Warrant is exercisable (in relation to other securities owned by the Holder together with any Affiliates and Attribution Parties) and of which portion of this Warrant is exercisable, in each case, subject to the Beneficial Ownership Limitation, and the Company shall have no obligation to verify or confirm the accuracy of such determination and shall have no liability for exercises of this Warrant that are not in compliance with the Beneficial Ownership Limitation. In addition, a determination as to any group status as contemplated above shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder and the Company shall have no obligation to verify or confirm the accuracy of such determination and shall have no liability for exercises of the Warrant that are not in compliance with the Beneficial Ownership Limitation. For purposes of this Section 2(e), in determining the number of outstanding Common Shares, a Holder may rely on the number of outstanding Common Shares as reflected in (A) the Company’s most recent periodic or annual report filed with the Commission, as the case may be, (B) a more recent public announcement by the Company or (C) a more recent written notice by the Company or the Transfer Agent setting forth the number of Common Shares outstanding. Upon the written or oral request of a Holder, the Company shall within two (2) Trading Days confirm in writing to the Holder the number of Common Shares then outstanding. In any case, the number of outstanding Common Shares shall be determined after giving effect to the conversion or exercise of securities of the Company, including this Warrant, by the Holder or its Affiliates or Attribution Parties since the date as of which such number of outstanding Common Shares was reported. By written notice to the Company, the Holder may from time to time increase or decrease the Beneficial Ownership Limitation applicable to the Holder, provided, however, that any such increase in the Beneficial Ownership Limitation will not be effective until the sixty-first (61st) day after such notice is delivered to the Company. The provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section 2(e) to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the intended Beneficial Ownership Limitation herein contained or to make changes or supplements necessary or desirable to properly give effect to such limitation. The limitations contained in this paragraph shall apply to a successor holder of this Warrant.
Section 3. Certain Adjustments.
(a) | Stock Dividends and Splits. If the Company at any time while this Warrant is outstanding: (i) pays a stock dividend or otherwise makes a distribution or distributions on shares of its Common Share or any other equity or equity equivalent securities payable in Common Shares (which, for avoidance of doubt, shall not include any Common Shares issued by the Company upon exercise of this Warrant or any cash distributions), (ii) subdivides outstanding Common Shares into a larger number of shares, (iii) combines (including by way of a reverse stock split) outstanding Common Shares into a smaller number of shares, or (iv) issues by reclassification of shares of the Common Share any shares of capital stock of the Company, then in each case the Exercise Price shall be multiplied by a fraction of which the numerator shall be the number of Common Shares (excluding treasury shares, if any) outstanding immediately before such event and of which the denominator shall be the number of Common Shares outstanding immediately after such event, and the number of shares issuable upon exercise of this Warrant shall be proportionately adjusted such that the aggregate Exercise Price of this Warrant shall remain unchanged. Any adjustment made pursuant to this Section 3(a) shall become effective immediately after the record date for the determination of |
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stockholders entitled to receive such dividend or distribution and shall become effective immediately after the effective date in the case of a subdivision, combination or re-classification.
(b) | VWAP Reset. If on the twenty-first trading day immediately following the date that is six months after the Closing Date, the VWAP (as defined in Schedule A) of the Common Shares for the twenty trading period commencing on the date that is six months after the Closing Date (the “Measurement Price”) is less than the Exercise Price then in effect, then the Exercise Price then in effect shall be reduced to an amount equal to the greater of (i) the Measurement Price and (ii) $5.00. |
(c) | Adjustment Upon Issuance of Common Share. From the date hereof until such date that no Warrants remain outstanding, the Company issues or sells, or in accordance with this Section 3(c) is deemed to have issued or sold, any Common Shares (including the issuance or sale of Common Shares owned or held by or for the account of the Company, but excluding Common Shares issued or sold, or deemed to have been issued or sold, by the Company in connection with any Exempt Issuance) for a consideration per share (the “New Issuance Price”) less than the Exercise Price then in effect (each such issue, sale or deemed issuance or sale, a “Dilutive Issuance”), where the aggregate amount of consideration received by the Company, together with all prior issuances and sales conducted for the purpose of raising capital by the Company on or after the Closing Date that were excluded from this Section 3(c) by this clause, exceeds $500,000, then immediately after such Dilutive Issuance, the Exercise Price then in effect shall be reduced to an amount equal to the New Issuance Price. |
For purposes of determining the adjusted Exercise Price under this Section 3(c), the following shall be applicable:
(i) | Options and Convertible Securities. The consideration per share received by the Company for Common Share deemed to have been issued pursuant to Section 3(c)(ii), relating to Options and Convertible Securities, shall be determined by dividing: |
(1) | the total amount, if any, received or receivable by the Company as consideration for the issue of such Options or Convertible Securities, plus the minimum aggregate amount of additional consideration (as set forth in the instruments relating thereto, without regard to any provision contained therein for a subsequent adjustment of such consideration) payable to the Company upon the exercise of such Options or the conversion or exchange of such Convertible Securities, or in the case of Options for Convertible Securities, the exercise of such Options for Convertible Securities and the conversion or exchange of such Convertible Securities, by |
(2) | the maximum number of Common Shares (as set forth in the instruments relating thereto, without regard to any provision contained therein for a subsequent adjustment of such number) deemed to be issued pursuant to Section 3(c)(ii) upon the issuance of such Options or Convertible Securities. |
(ii) | Deemed Issuance of Options and Convertible Securities. |
(1) | If the Company at any time or from time to time shall issue any Options or Convertible Securities or shall fix a record date for the determination of holders of any class of securities entitled to receive any such Options or Convertible Securities, then the maximum number of Common Shares (as set forth in the instrument relating thereto, assuming the satisfaction of any conditions to exercisability, convertibility or exchangeability but without regard to any provision contained therein for a subsequent adjustment of such number) issuable upon the exercise of such Options or, in the case of Convertible Securities and Options therefor, the conversion or exchange of such Convertible Securities, shall be deemed to be outstanding and to have been issued as of the time of such issue or, in case such a record date shall have been fixed, as of the close of business on such record date. |
(2) | If the purchase price provided for in any Options, the additional consideration, if any, payable upon the issue, conversion, exercise or exchange of any Convertible Securities, or the rate at which any Convertible Securities are convertible into or exercisable or exchangeable for Common Share |
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increases or decreases at any time, (other than (x) proportional changes in conversion or exercise prices, as applicable, in connection with an event referred to in Section 3(a) above and (y) automatic adjustments to such terms pursuant to anti-dilution or similar provisions of such Option or Convertible Security which are not more favorable to the holder thereof than the anti-dilution and similar provisions set forth herein), the Exercise Price in effect at the time of such increase or decrease shall be adjusted to the Exercise Price, which would have been in effect at such time had such Options or Convertible Securities provided for such increased or decreased purchase price, additional consideration or increased or decreased conversion rate, as the case may be, at the time initially granted, issued or sold. For purposes of this Section 3(c)(ii)(2), if the terms of any Option or Convertible Security that was outstanding as of the Initial Exercise Date are increased or decreased in the manner described in the immediately preceding sentence, then such Option or Convertible Security and the Common Shares deemed issuable upon exercise, conversion or exchange thereof shall be deemed to have been issued as of the date of such increase or decrease. No adjustment pursuant to this Section 3(c)(i)(2) shall be made if such adjustment would result in an increase of the Exercise Price then in effect.
(iii) | Calculation of Consideration Received. |
(1) | In case one or more Option is issued in connection with the issue or sale of other securities of the Company, together comprising one integrated transaction, (x) each such Option will be deemed to have been issued for the Option Value of such Option and (y) the other securities issued or sold in such integrated transaction shall be deemed to have been issued or sold for the difference of (I) the aggregate consideration received by the Company less any consideration paid or payable by the Company pursuant to the terms of such other securities of the Company, less (II) the Option Value of each such Options; provided, that, no Common Share shall be deemed to have been issued for less than a fraction of the aggregate consideration received (excluding the minimum aggregate amount of additional consideration (as set forth in the instruments relating thereto, without regard to any provision contained therein for a subsequent adjustment of such consideration) payable to the Company upon the exercise of any such Options, or in the case of Options for Convertible Securities, the exercise of such Options for Convertible Securities and the conversion or exchange of such Convertible Securities) equal to (A) one divided by (2) the total number of Common Shares issued or issuable in the integrated transaction (including the number of shares underlying any Options and Convertible Securities). |
(2) | If any Common Shares, Options or Convertible Securities are issued or sold for a consideration other than cash, the amount of such consideration received by the Company will be the fair value of such consideration, except where such consideration consists of publicly traded securities, in which case the amount of consideration received by the Company will be the closing sale price of such publicly traded securities on the date of receipt. If any Common Shares, Options or Convertible Securities are issued to the owners of the non-surviving entity in connection with any merger in which the Company is the surviving entity, the amount of consideration therefor will be deemed to be the fair value of such portion of the net assets and business of the non-surviving entity as is attributable to such Common Shares, Options or Convertible Securities, as the case may be. The fair value of any consideration other than cash or publicly traded securities will be determined jointly by the Company and the holders of a majority in interest of this Warrant and the other Common Share purchase warrants with substantially the same terms as this Warrant, with an initial exercise price of $12.00 per share, issued on the Initial Exercise Date, and then outstanding. If such parties are unable to reach agreement within ten (10) days after the occurrence of an event requiring valuation (the “Valuation Event”), the fair value of such consideration will be determined within five (5) Business Days after the tenth (10th) day following the Valuation Event by an independent, reputable appraiser jointly selected by the Company and the holders of a majority in interest of this Warrant and the other Common Share purchase warrants, with an initial exercise price of $12.00 per share, issued on the Initial Exercise Date, and then outstanding. The determination of such appraiser shall be final and binding upon all parties absent manifest error and the fees and expenses of such appraiser shall be borne by the Company. |
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(iv) | Record Date. If the Company takes a record of the holders of Common Shares for the purpose of entitling them (A) to receive a dividend or other distribution payable in Common Shares, Options or in Convertible Securities or (B) to subscribe for or purchase Common Shares, Options or Convertible Securities, then such record date will be deemed to be the date of the issuance or sale of the Common Shares deemed to have been issued or sold upon the declaration of such dividend or the making of such other distribution or the date of the granting of such right of subscription or purchase, as the case may be. |
(v) | Expiration or Termination of Options or Convertible Securities. Upon the expiration or termination of any unexercised Option or unconverted or unexchanged Convertible Securities (or portion thereof) which resulted (either upon its original issuance or upon a revision of its terms) in an adjustment to the Exercise Price pursuant to the terms of Section 3(c), the Exercise Price shall be readjusted to such Exercise Price as would have obtained had such Option or Convertible Securities (or portion thereof) never been issued. |
(d) | Subsequent Rights Offerings. In addition to any adjustments pursuant to Section 3(a) above, if at any time after the Initial Exercise Date the Company grants, issues or sells any Common Share Equivalents or rights to purchase stock, warrants, securities or other property pro rata to the record holders of any class of Common Shares (the “Purchase Rights”), then the Holder will be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could have acquired if the Holder had held the number of Common Shares acquirable upon complete exercise of this Warrant (without regard to any limitations on exercise hereof, including without limitation, any applicable Beneficial Ownership Limitation) immediately before the date on which a record is taken for the grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the date as of which the record holders of Common Shares are to be determined for the grant, issue or sale of such Purchase Rights (provided, however, that, to the extent that the Holder’s right to participate in any such Purchase Right would result in the Holder exceeding any applicable Beneficial Ownership Limitation, then the Holder shall not be entitled to participate in such Purchase Right to such extent (or beneficial ownership of such Common Shares as a result of such Purchase Right to such extent) and such Purchase Right to such extent shall be held in abeyance for the Holder until such time, if ever, as its right thereto would not result in the Holder exceeding any applicable Beneficial Ownership Limitation). To the extent that the issue price of such Purchase Rights would result in an adjustment of the Exercise Price pursuant to Section 3(c), such adjustment shall not occur to the extent the Holders were granted the right to acquire such Purchase Rights on the applicable terms. |
(e) | Pro Rata Distributions. If the Company shall declare or make any dividend or other distribution of its assets (or rights to acquire its assets) to holders of Common Shares, by way of return of capital or otherwise (including, without limitation, any distribution of cash, stock or other securities, property or options by way of a dividend, spin off, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction) (a “Distribution”), at any time after the issuance of this Warrant, then, in each such case, the Holder shall be entitled to participate in such Distribution to the same extent that the Holder would have participated therein if the Holder had held the number of Common Shares acquirable upon complete exercise of this Warrant (without regard to any limitations on exercise hereof, including without limitation, any applicable Beneficial Ownership Limitation) immediately before the date of which a record is taken for such Distribution, or, if no such record is taken, the date as of which the record holders of Common Shares are to be determined for the participation in such Distribution (provided, however, that, to the extent that the Holder’s right to participate in any such Distribution would result in the Holder exceeding any applicable Beneficial Ownership Limitation, then the Holder shall not be entitled to participate in such Distribution to such extent (or in the beneficial ownership of any Common Shares as a result of such Distribution to such extent) and the portion of such Distribution shall be held in abeyance for the benefit of the Holder until such time, if ever, as its right thereto would not result in the Holder exceeding any applicable Beneficial Ownership Limitation). |
(f) | Fundamental Transaction. |
(i) | If, at any time while this Warrant is outstanding, (i) the Company, directly or indirectly, in one or more related transactions effects any merger or consolidation of the Company with or into another Person, (ii) |
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the Company (and all of its subsidiaries, taken as a whole), directly or indirectly, effects any sale, lease, license, assignment, transfer, conveyance or other disposition of all or substantially all of its assets in one or a series of related transactions, (iii) any, direct or indirect, purchase offer, tender offer or exchange offer (whether by the Company or another Person) is completed pursuant to which holders of Common Share are permitted to sell, tender or exchange their shares for other securities, cash or property and has been accepted by the holders of 50% or more of the outstanding Common Share, (iv) the Company, directly or indirectly, in one or more related transactions effects any reclassification, reorganization or recapitalization of the Common Share or any compulsory share exchange pursuant to which the Common Share is effectively converted into or exchanged for other securities, cash or property (other than as a result of a stock split, combination or reclassification of Common Shares covered by Section 3(a)), or (v) the Company, directly or indirectly, in one or more related transactions consummates a stock or share purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization, spin-off, merger or scheme of arrangement) with another Person or group of Persons whereby such other Person or group acquires 50% or more of the outstanding Common Shares (not including any Common Shares held by the other Person or other Persons making or party to, or associated or affiliated with the other Persons making or party to, such stock or share purchase agreement or other business combination) or 50% or more of the voting power of the common equity of the Company (each a “Fundamental Transaction”), then, upon any subsequent exercise of this Warrant, the Holder shall have the right to receive, for each Warrant Share that would have been issuable upon such exercise immediately prior to the occurrence of such Fundamental Transaction, at the option of the Holder (without regard to any limitation in Section 2(e) on the exercise of this Warrant), the number of Common Shares of the successor or acquiring corporation or of the Company, if it is the surviving corporation, and any additional consideration (the “Alternate Consideration”) receivable as a result of such Fundamental Transaction by a holder of the number of Common Shares for which this Warrant is exercisable immediately prior to such Fundamental Transaction (without regard to any limitation in Section 2(e) on the exercise of this Warrant).
(ii) | For purposes of any such exercise, the determination of the Exercise Price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one Common Share in such Fundamental Transaction, and the Company shall apportion the Exercise Price among the Alternate Consideration in a reasonable manner reflecting the relative value of any different components of the Alternate Consideration. If holders of Common Share are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate Consideration it receives upon any exercise of this Warrant following such Fundamental Transaction. Notwithstanding anything to the contrary, in the event of a Fundamental Transaction, the Company or any Successor Entity (as defined below) shall, at the Holder’s option, exercisable at any time concurrently with, or within 30 days after, the consummation of the Fundamental Transaction (or, if later, the date of the public announcement of the applicable Fundamental Transaction), purchase this Warrant from the Holder by paying to the Holder an amount of cash equal to the Black Scholes Value of the remaining unexercised portion of this Warrant on the date of the consummation of such Fundamental Transaction; provided, that if holders of Common Share of the Company are not offered or paid any consideration in such Fundamental Transaction, such holders of Common Share will be deemed to have received Common Share or ordinary shares of the Successor Entity (which Successor Entity may be the Company following such Fundamental Transaction) in such Fundamental Transaction. The payment of the Black Scholes Value will be made by wire transfer of immediately available funds (or such other consideration) within the later of (i) five Business Days of the Holder’s election and (ii) the date of consummation of the Fundamental Transaction. |
(iii) | The Company shall cause any successor entity in a Fundamental Transaction in which the Company is not the survivor (the “Successor Entity”) to assume in writing all of the obligations of the Company under this Warrant and the other Transaction Documents in accordance with the provisions of this Section 3(f) pursuant to written agreements in form and substance reasonably satisfactory to the Holder and approved by the Holder (without unreasonable delay) prior to such Fundamental Transaction and shall, at the option of the Holder, deliver to the Holder in exchange for this Warrant a security of the Successor Entity evidenced by a written instrument substantially similar in form and substance to this Warrant which is exercisable for a corresponding number of shares of capital stock of such Successor |
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Entity (or its parent entity) equivalent to the Common Shares acquirable and receivable upon exercise of this Warrant (without regard to any limitations on the exercise of this Warrant) prior to such Fundamental Transaction, and with an exercise price which applies the Exercise Price hereunder to such shares of capital stock (but taking into account the relative value of the Common Shares pursuant to such Fundamental Transaction and the value of such shares of capital stock, such number of shares of capital stock and such exercise price being for the purpose of protecting the economic value of this Warrant immediately prior to the consummation of such Fundamental Transaction), and which is reasonably satisfactory in form and substance to the Holder.
(g) | Calculations. All calculations under this Section 3 shall be made to the nearest cent or the nearest 1/100th of a share, as the case may be. For purposes of this Section 3, the number of Common Shares deemed to be issued and outstanding as of a given date shall be the sum of the number of Common Shares (excluding treasury shares, if any) issued and outstanding. |
(h) | Number of Warrant Shares. Simultaneously with any adjustment to the Exercise Price pursuant to this Section 3, the number of Warrant Shares that may be purchased upon exercise of this Warrant shall be increased or decreased proportionately so that after such adjustment the aggregate Exercise Price payable hereunder for the adjusted number of Warrant Shares shall be the same as the aggregate Exercise Price in effect immediately prior to such adjustment (without regard to any limitations on exercise contained herein). |
(i) | Notice to Holder. |
(i) | Adjustment to Exercise Price. Whenever the Exercise Price is adjusted pursuant to any provision of this Section 3, the Company shall promptly deliver to the Holder by email a notice setting forth the Exercise Price after such adjustment and any resulting adjustment to the number of Warrant Shares and setting forth a brief statement of the facts requiring such adjustment. |
(ii) | Notice to Allow Exercise by Holder. If (A) the Company shall declare a dividend (or any other distribution in whatever form) on the Common Share, (B) the Company shall declare a redemption of the Common Share, (C) the Company shall authorize the granting to all holders of the Common Share rights or warrants to subscribe for or purchase any shares of capital stock of any class or of any rights, (D) the approval of any stockholders of the Company shall be required in connection with any reclassification of the Common Share, any consolidation or merger to which the Company (or any of its subsidiaries) is a party, any sale or transfer of all or substantially all of its assets, or any compulsory share exchange whereby the Common Share is converted into other securities, cash or property, or (E) the Company shall authorize the voluntary or involuntary dissolution, liquidation or winding up of the affairs of the Company, then, in each case, the Company shall cause to be delivered by facsimile or email to the Holder at its last facsimile number or email address as it shall appear upon the Warrant Register of the Company, at least 20 calendar days prior to the applicable record or effective date hereinafter specified, a notice stating (x) the date on which a record is to be taken for the purpose of such dividend, distribution, redemption, rights or warrants, or if a record is not to be taken, the date as of which the holders of the Common Share of record to be entitled to such dividend, distributions, redemption, rights or warrants are to be determined or (y) the date on which such reclassification, consolidation, merger, sale, transfer or share exchange is expected to become effective or close, and the date as of which it is expected that holders of the Common Share of record shall be entitled to exchange their shares of the Common Share for securities, cash or other property deliverable upon such reclassification, consolidation, merger, sale, transfer or share exchange; provided, that, notwithstanding the foregoing, any notice delivery requirement hereunder shall also be deemed satisfied by filing or furnishing such communication with the Commission via the EDGAR system; provided, further, that the failure to deliver such notice or any defect therein or in the delivery thereof shall not affect the validity of the corporate action required to be specified in such notice. To the extent that any notice provided to the Holder in accordance with the terms of this Warrant constitutes, or contains, material, non-public information regarding the Company or any of the subsidiaries, the Company shall simultaneously file such notice with the Commission pursuant to a Current Report on Form 8-K, unless determined by the Company that such filing would be harmful to the Company at such time, in which case the Company shall file such 8-K as soon as is reasonably practicable in its discretion. The Holder shall remain entitled |
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to exercise this Warrant during the period commencing on the date of such notice to the effective date of the event triggering such notice except as may otherwise be expressly set forth herein.
(j) | Voluntary Adjustment By Company. Subject to the rules and regulations of the Trading Market, the Company may at any time during the term of this Warrant, subject to the prior written consent of the Holder, reduce the then current Exercise Price to any amount and for any period of time deemed appropriate by the board of directors of the Company. |
Section 4. Transfer of Warrant.
(a) | Transferability. Subject to compliance with any applicable securities laws and the conditions set forth in Section 4(d) hereof, this Warrant and all rights hereunder (including, without limitation, any registration rights) are transferable, in whole or in part, upon surrender of this Warrant at the principal office of the Company or its designated agent, together with a written assignment of this Warrant substantially in the form attached hereto duly executed by the Holder or its agent or attorney and funds sufficient to pay any transfer taxes payable upon the making of such transfer. Upon such surrender and, if required, such payment, the Company shall execute and deliver a new Warrant or Warrants in the name of the assignee or assignees, as applicable, and in the denomination or denominations specified in such instrument of assignment, and shall issue to the assignor a new Warrant evidencing the portion of this Warrant not so assigned, and this Warrant shall promptly be cancelled. Notwithstanding anything herein to the contrary, the Holder shall not be required to physically surrender this Warrant to the Company unless the Holder has assigned this Warrant in full, in which case, the Holder shall surrender this Warrant to the Company within three (3) Trading Days of the date on which the Holder delivers an assignment form to the Company assigning this Warrant in full. The Warrant, if properly assigned in accordance herewith, may be exercised by a new holder for the purchase of Warrant Shares without having a new Warrant issued. |
(b) | New Warrants. This Warrant may be divided or combined with other Warrants upon presentation hereof at the aforesaid office of the Company, together with a written notice specifying the names and denominations in which new Warrants are to be issued, signed by the Holder or its agent or attorney. Subject to compliance with Section 4(a), as to any transfer which may be involved in such division or combination, the Company shall execute and deliver a new Warrant or Warrants in exchange for the Warrant or Warrants to be divided or combined in accordance with such notice. All Warrants issued on transfers or exchanges shall be dated the Initial Exercise Date and shall be identical with this Warrant except as to the number of Warrant Shares issuable pursuant thereto, and if applicable, shall reflect any adjustment to the Exercise Price prior to the date of such transfer or exchange. |
(c) | Warrant Register. The Company shall register this Warrant, upon records to be maintained by the Company for that purpose (the “Warrant Register”), in the name of the record Holder hereof from time to time. The Company may deem and treat the registered Holder of this Warrant as the absolute owner hereof for the purpose of any exercise hereof or any distribution to the Holder, and for all other purposes, absent actual notice to the contrary. |
(d) | Transfer Restrictions. This Warrant and the Warrant Shares may only be disposed of in compliance with state and federal securities laws. In connection with any transfer of this Warrant or the Warrant Shares other than pursuant to an effective registration statement or Rule 144, to the Company or to an Affiliate of the Holder or in connection with a pledge in connection with a bona fide margin account with a registered broker-dealer or other loan with a financial institution that is an “accredited investor” as defined in Rule 501(a) under the Securities Act or other loan secured by this Warrant or the Warrant Shares, the Company may require the transferor to provide to the Company an opinion of counsel selected by the transferor and reasonably acceptable to the Company, the form and substance of which opinion shall be reasonably satisfactory to the Company, to the effect that such transfer does not require registration of this Warrant or the Warrant Shares under the Securities Act. |
(e) | Representation by the Holder. The Holder, by the acceptance hereof, represents and warrants that it is acquiring this Warrant and, upon any exercise hereof, will acquire the Warrant Shares issuable upon such exercise, for its own account and not with a view to or for distributing or reselling such Warrant Shares or |
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any part thereof in violation of the Securities Act or any applicable state securities law, except pursuant to sales registered or exempted under the Securities Act.
Section 5. Miscellaneous.
(a) | No Rights as Stockholder Until Exercise. This Warrant does not entitle the Holder to any voting rights, dividends or other rights as a stockholder of the Company prior to the exercise hereof as set forth in Section 2(d)(i), except as expressly set forth in Section 3. |
(b) | Loss, Theft, Destruction or Mutilation of Warrant. The Company covenants that upon receipt by the Company of evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation of this Warrant or any stock certificate relating to the Warrant Shares, and in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it (which, in the case of the Warrant, shall not include the posting of any bond), and upon surrender and cancellation of such Warrant or stock certificate, if mutilated, the Company will make and deliver a new Warrant or stock certificate of like tenor and dated as of such cancellation, in lieu of such Warrant or stock certificate. |
(c) | Saturdays, Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of any right required or granted herein shall not be a Business Day, then, such action may be taken or such right may be exercised on the next succeeding Business Day. |
(d) | Authorized Shares. |
(i) | The Company covenants that, during the period the Warrant is outstanding, it will reserve from its authorized and unissued Common Share a sufficient number of shares to provide for the issuance of the Warrant Shares upon the exercise of any purchase rights under this Warrant (without regard to any limitation on exercise set forth herein and assuming an Exercise Price equal to the lower of (i) $5.00 and (ii) the Exercise Price then in effect). The Company further covenants that its issuance of this Warrant shall constitute full authority to its officers who are charged with the duty of issuing the necessary Warrant Shares upon the exercise of the purchase rights under this Warrant. The Company will take all such reasonable action as may be necessary to assure that such Warrant Shares may be issued as provided herein without violation of any applicable law or regulation, or of any requirements of the Trading Market upon which the Common Share may be listed. The Company covenants that all Warrant Shares which may be issued upon the exercise of the purchase rights represented by this Warrant will, upon exercise of the purchase rights represented by this Warrant and payment for such Warrant Shares in accordance herewith, be duly authorized, validly issued, fully paid and nonassessable and free from all taxes, liens and charges created by the Company in respect of the issue thereof (other than taxes in respect of any transfer occurring contemporaneously with such issue). |
(ii) | Except and to the extent as waived or consented to by the Holder, the Company shall not by any action, including, without limitation, amending its Certificate of Incorporation (or any Certificate of Designation thereto) or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such actions as may be necessary or appropriate to protect the rights of Holder as set forth in this Warrant against impairment. Without limiting the generality of the foregoing, the Company will (i) not increase the par value of any Warrant Shares above the amount payable therefor upon such exercise immediately prior to such increase in par value, (ii) take all such action as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and nonassessable Warrant Shares upon the exercise of this Warrant and (iii) use commercially reasonable efforts to obtain all such authorizations, exemptions or consents from any public regulatory body having jurisdiction thereof, as may be, necessary to enable the Company to perform its obligations under this Warrant. |
(iii) | Before taking any action which would result in an adjustment in the number of Warrant Shares for which this Warrant is exercisable or in the Exercise Price, the Company shall obtain all such authorizations or |
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exemptions thereof, or consents thereto, as may be necessary from any public regulatory body or bodies having jurisdiction thereof.
(e) | Jurisdiction. All questions concerning the construction, validity, enforcement and interpretation of this Warrant shall be governed by and construed and enforced in accordance with the internal laws of the State of Delaware, without regard to the principles of conflicts of law thereof. Each party agrees that all legal Proceedings concerning the interpretations, enforcement and defense of the transactions contemplated by this Warrant (whether brought against a party hereto or its respective Affiliates, directors, officers, shareholders, partners, members, employees or agents) shall be commenced exclusively in the state and federal courts sitting in the State of Delaware. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the State of Delaware for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including with respect to the enforcement of this Warrant), and hereby irrevocably waives, and agrees not to assert in any Action or Proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such Action or Proceeding is improper or is an inconvenient venue for such Proceeding. Each party hereby irrevocably waives personal service of process and consents to process being served in any such Action or Proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Warrant and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law. If any party shall commence an Action or Proceeding to enforce any provisions of this Warrant, then, the prevailing party in such Action or Proceeding shall be reimbursed by the non-prevailing party for its reasonable attorneys’ fees and other costs and expenses incurred with the investigation, preparation and prosecution of such Action or Proceeding. |
(f) | Restrictions. The Holder acknowledges that the Warrant Shares acquired upon the exercise of this Warrant, if not registered, and the Holder does not utilize cashless exercise, will have restrictions upon resale imposed by state and federal securities laws. |
(g) | Nonwaiver and Expenses. No course of dealing or any delay or failure to exercise any right hereunder on the part of Holder shall operate as a waiver of such right or otherwise prejudice the Holder’s rights, powers or remedies. Without limiting any other provision of this Warrant, if the Company willfully and knowingly fails to comply with any provision of this Warrant, which results in any material damages to the Holder, the Company shall pay to the Holder such amounts as shall be sufficient to cover any costs and expenses including, but not limited to, reasonable attorneys’ fees, including those of appellate proceedings, incurred by the Holder in collecting any amounts due pursuant hereto or in otherwise enforcing any of its rights, powers or remedies hereunder. |
(h) | Notices. Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall be deemed given and effective on the earliest of: (a) the time of transmission, if such notice or communication is delivered via email at the e-mail address as set forth on the signature pages attached hereto, or to such other address as the Company or the Holder may indicate by a notice delivered to the other from time to time, at or prior to 5:30 p.m. (New York City time) on a Trading Day, (b) the next Trading Day after the time of transmission, if such notice or communication is delivered via email attachment at the e-mail address as set forth on the signature pages attached hereto on a day that is not a Trading Day or later than 5:30 p.m. (New York City time) on any Trading Day, (c) the second (2nd) Trading Day following the date of mailing, if sent by U.S. nationally recognized overnight courier service or (d) upon actual receipt by the party to whom such notice is required to be given. The address for such notices and communications shall be as set forth on the signature pages attached hereto, or to such other address as the Company or the Holder may indicate by a notice delivered to the other from time to time. |
(i) | Limitation of Liability. No provision hereof, in the absence of any affirmative action by the Holder to exercise this Warrant to purchase Warrant Shares, and no enumeration herein of the rights or privileges of the Holder, shall give rise to any liability of the Holder for the purchase price of any Common Share or as a stockholder of the Company, whether such liability is asserted by the Company or by creditors of the Company. |
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(j) | Remedies. The Holder, in addition to being entitled to exercise all rights granted by law, including recovery of damages, will be entitled to specific performance of its rights under this Warrant. The Company agrees that monetary damages would not be adequate compensation for any loss incurred by reason of a breach by it of the provisions of this Warrant and hereby agrees to waive and not to assert the defense in any action for specific performance that a remedy at law would be adequate. |
(k) | Successors and Assigns. Subject to applicable securities laws, this Warrant and the rights and obligations evidenced hereby shall inure to the benefit of and be binding upon the successors and permitted assigns of the Company and the successors and permitted assigns of Holder. The provisions of this Warrant are intended to be for the benefit of any Holder from time to time of this Warrant and shall be enforceable by the Holder or holder of Warrant Shares. |
(l) | Amendment. This Warrant may be modified, waived or amended or the provisions hereof waived with the written consent of the Company and the Holder. |
(m) | Severability. Wherever possible, each provision of this Warrant shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Warrant shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provisions or the remaining provisions of this Warrant. |
(n) | Headings. The headings used in this Warrant are for the convenience of reference only and shall not, for any purpose, be deemed a part of this Warrant. |
********************
(Signature Page Follows)
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IN WITNESS WHEREOF, the parties hereto have caused this Common Share Purchase Warrant to be duly executed by their respective authorized signatories as of the date first indicated above.
General Fusion Group Ltd. | | Address for Notice: | |
| | | |
By: | | | |
Name: | | | |
Title: | | | Email: |
| | | |
With a copy to (which shall not constitute notice): | | | |
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IN WITNESS WHEREOF, the undersigned have caused this Common Share Purchase Warrant to be duly executed by their respective authorized signatories as of the date first indicated above.
Name of Purchaser:
Signature of Authorized Signatory of Purchaser:
Name of Authorized Signatory:
Title of Authorized Signatory:
Email Address of Authorized Signatory:
Address for Notice to Purchaser:
Address for Delivery of Securities to Purchaser (if not same as address for notice):
Warrant Shares:
EIN Number:
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SCHEDULE A
“Action” means any action, suit, inquiry, notice of violation, proceeding or investigation pending or, to the knowledge of the applicable party, threatened against or affecting the applicable party or any of its properties before or by any court, arbitrator, governmental or administrative agency or regulatory authority (federal, state, county, local or foreign).
“Affiliate” means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control with a Person, as such terms are used in and construed under Rule 405 under the Securities Act.
“Black Scholes Value” means the value of this Warrant based on the Black-Scholes Option Pricing Model obtained from the “OV” function on Bloomberg determined as of the day of consummation of the applicable Fundamental Transaction for pricing purposes and reflecting (A) a risk-free interest rate corresponding to the U.S. Treasury rate for a period equal to the time between the date of the public announcement of the applicable contemplated Fundamental Transaction and the Termination Date, (B) an expected volatility equal to the greater of 100% and the 100 day volatility obtained from the HVT function on Bloomberg (determined utilizing a 365 day annualization factor) as of the Trading Day immediately following the public announcement of the applicable contemplated Fundamental Transaction, (C) the underlying price per share used in such calculation shall be the greater of (i) the sum of the price per share being offered in cash, if any, plus the value of any non-cash consideration, if any, being offered in such Fundamental Transaction and (ii) the highest VWAP during the period beginning on the Trading Day immediately preceding the announcement of the applicable Fundamental Transaction (or the consummation of the applicable Fundamental Transaction, if earlier) and ending on the Trading Day of the Holder’s request pursuant to this Section 3(f), (D) a remaining option time equal to the time between the date of the public announcement of the applicable Fundamental Transaction and the Termination Date and (E) a zero cost of borrow.
“Bloomberg” means Bloomberg L.P.
“Business Combination” means the transactions contemplated by the Business Combination Agreement.
“Business Combination Agreement” means that certain Business Combination Agreement, dated as of January 21, 2026, by and among the Company, 1573562 B.C. Ltd. and General Fusion Inc., as it may be further amended, modified or supplemented from time to time.
“Business Day” means any day other than Saturday, Sunday or other day on which commercial banks in The City of New York are authorized or required by law to remain closed; provided, however, for clarification, commercial banks shall not be deemed to be authorized or required by law to remain closed due to “stay at home,” “shelter-in-place,” “non-essential employee” or any other similar orders or restrictions or the closure of any physical branch locations at the direction of any governmental authority so long as the electronic funds transfer systems (including for wire transfers) of commercial banks in The City of New York are generally are open for use by customers on such day.
“Closing Date” means the Trading Day on which the Business Combination is consummated.
“Common Share Equivalents” means any securities of the Company which would entitle the holder thereof to acquire at any time Common Share, including, without limitation, any debt, preferred stock, right, option, warrant or other instrument that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive, Common Share, and any securities of the Company that when paired with one or more other securities of the Company or another entity entitles the holder thereof to receive, Common Share.
“Convertible Securities” means any stock or securities (other than Options) directly or indirectly convertible into or exercisable or exchangeable for, or which otherwise entitles the holder thereof to acquire, any Common Shares and any securities of the Company that when paired with one or more other securities of the Company or another entity entitles the holder thereof to receive, Common Share.
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“Exempt Issuance” means the issuance of (a) any securities of the Company to employees, officers or directors, consultants, contractors, vendors or other agents of the Company pursuant to any stock or option plan duly adopted for such purpose, by a majority of the non-employee members of the Board of Directors or a majority of the members of a committee of non-employee directors established for such purpose for services rendered to the Company, (b) securities upon the exercise or exchange of or conversion of any securities issued pursuant to the Purchase Agreements or the Business Combination Agreement and/or other securities exercisable or exchangeable for or convertible into Common Shares issued and outstanding on the Closing Date, provided that such securities have not been amended since the Closing Date to increase the number of such securities or to decrease the exercise price, exchange price or conversion price of such securities (other than in connection with stock splits or combinations and automatic adjustments to such terms pursuant to anti-dilution or similar provisions of such securities which are not more favorable to the holder thereof than the anti-dilution and similar provisions set forth herein) or to extend the term of such securities, (c) the Underlying Shares, and (d) securities issued pursuant to any merger, acquisition or strategic transaction or partnership approved by a majority of the directors of the Company, provided that (i) such securities are issued as “restricted securities” (as defined in Rule 144) or are issued pursuant to an effective registration statement pursuant to the Securities Act and (ii) any such issuance shall only be to a Person (or to the equityholders of a Person) which is, itself or through its subsidiaries, an operating company or an owner of an asset in a business synergistic with the business of the Company and shall provide to the Company additional benefits in addition to the investment of funds, but any such Exempt Issuance shall not include a transaction in which the Company is issuing securities (i) primarily for the purpose of raising capital, including an at-the-market offering, or (ii) to an entity whose primary business is investing in securities, and (e) any securities issued by the Company pursuant to any legal settlement or similar arrangement agreed or entered into by the Company, but any such Exempt Issuance shall not include a transaction in which the Company is issuing securities (i) primarily for the purpose of raising capital, including an at-the-market offering unless as approved by the Required Holders, and (ii) to an entity whose primary business is investing in securities,.
“Options” means any rights, warrants or options to subscribe for or purchase Common Shares or Convertible Securities.
“Option Value” means the value of an Option based on the Black-Scholes Option Pricing model obtained from the “OV” function on Bloomberg determined as of (A) the Trading Day prior to the public announcement of the issuance of the applicable Option, if the issuance of such Option is publicly announced or (B) the Trading Day immediately following the issuance of the applicable Option if the issuance of such Option is not publicly announced, for pricing purposes and reflecting (i) a risk-free interest rate corresponding to the U.S. Treasury rate for a period equal to the remaining term of the applicable Option as of the applicable date of determination, (ii) an expected volatility equal to the greater of 100% and the 100 day volatility obtained from the HVT function on Bloomberg as of (A) the Trading Day immediately following the public announcement of the applicable Option if the issuance of such Option is publicly announced or (B) the Trading Day immediately following the issuance of the applicable Option if the issuance of such Option is not publicly announced, (iii) the underlying price per share used in such calculation shall be the highest weighted average price of the Common Share during the period beginning on the Trading Day prior to the execution of definitive documentation relating to the issuance of the applicable Option and ending on (A) the Trading Day immediately following the public announcement of such issuance, if the issuance of such Option is publicly announced or (B) the Trading Day immediately following the issuance of the applicable Option if the issuance of such Option is not publicly announced, (iv) a zero cost of borrow and (v) a 360 day annualization factor, provided, however, in case any Option is issued in connection with the issue or sale of other securities of the Company, together comprising one integrated transaction, in no event shall the Option Value exceed a fraction of the aggregate consideration received (excluding the minimum aggregate amount of additional consideration (as set forth in the instruments relating thereto, without regard to any provision contained therein for a subsequent adjustment of such consideration) payable to the Company upon the exercise of such Options, or in the case of Options for Convertible Securities, the exercise of such Options for Convertible Securities and the conversion or exchange of such Convertible Securities) equal to (1) the number of Common Shares underlying such Option divided by (2) the total number of Common Shares issued or issuable in the integrated transaction (including the number of shares underlying such Option).
“Person” means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.
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“PIPE Financing” has the meaning given to it in the Business Combination Agreement.
“Proceeding” means an action, claim, suit, investigation or proceeding, whether commenced or threatened.
“Purchase Agreements” means the several Securities Purchase Agreements pursuant to the PIPE Financing, between the Company and purchasers holding Common Share purchase warrants, with an initial exercise price of $12.00 per share, issued on the Initial Exercise Date, as amended, modified or supplemented from time to time in accordance with its terms.
“Registration Rights Agreement” means the Amended and Restated Registration Rights Agreement among the Company, the initial Holder of this Warrant and the other parties thereto.
“Trading Day” means a day on which the principal Trading Market is open for trading.
“Trading Market” means any of the following markets or exchanges on which the Common Share is listed or quoted for trading on the date in question: the NYSE American, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market or the New York Stock Exchange (or any successors to any of the foregoing).
“Transaction Documents” means this Warrant, the other Common Share purchase warrants with substantially the same terms as this Warrant, with an initial exercise price of $12.00 per share, issued on the Initial Exercise Date and the Registration Rights Agreement, and all exhibits and schedules thereto.
“Transfer Agent” means the transfer agent of the Company, as appointed from time to time.
“Underlying Shares” means the Common Shares issuable upon exercise of this Warrant and the other Common Share purchase warrants with substantially the same terms as this Warrant, with an initial exercise price of $12.00 per share, issued on the Initial Exercise Date.
“VWAP” means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Share is then listed or quoted on a Trading Market, the daily volume weighted average price of the Common Share for the 20 Trading Day preceding such date (or the nearest preceding date) on the Trading Market on which the Common Share is then listed or quoted as reported by Bloomberg (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b) if OTCQB or OTCQX is not a Trading Market, the volume weighted average price of the Common Share for the 20 Trading Days preceding such date (or the nearest preceding date) on OTCQB or OTCQX as applicable, (c) if the Common Share is not then listed or quoted for trading on OTCQB or OTCQX and if prices for the Common Share are then reported in The Pink Open Market (or a similar organization or agency succeeding to its functions of reporting prices), the average of the highest closing bid price per share and the lowest closing ask price per share of the Common Share for the 20 Trading Days preceding such date, or (d) in all other cases, the fair market value of a Common Share as determined by an independent appraiser selected in good faith by the holders of a majority in interest of this Warrant and the other Common Share purchase warrants with substantially the same terms as this Warrant, with an initial exercise price of $12.00 per share, issued on the Initial Exercise Date and then outstanding, and reasonably acceptable to the Company, the fees and expenses of which shall be paid by the Company.
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EXHIBIT A
NOTICE OF EXERCISE
To:
Attn:
Email:
(1) The undersigned hereby elects to purchase Warrant Shares of the Company pursuant to the terms of the attached Warrant (only if exercised in full), and tenders herewith payment of the exercise price in full, together with all applicable transfer taxes, if any.
(2) Payment shall take the form of (check applicable box):
☐ in lawful money of the United States; or
☐ if permitted the cancellation of such number of Warrant Shares as is necessary, in accordance with the formula set forth in subsection 2(c), to exercise this Warrant with respect to the maximum number of Warrant Shares purchasable pursuant to the cashless exercise procedure set forth in subsection 2(c).
(3) Please issue said Warrant Shares in the name of the undersigned or in such other name as is specified below:
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The Warrant Shares shall be delivered to the following DWAC Account Number:
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[(4) Accredited Investor. The undersigned is an “accredited investor” as defined in Regulation D promulgated under the Securities Act of 1933, as amended.]
[SIGNATURE OF HOLDER]
Name of Investing Entity: | | |
Signature of Authorized Signatory of Investing Entity: | | |
Name of Authorized Signatory: | | |
Title of Authorized Signatory: | | |
Date: | | |
-20-
EXHIBIT B
ASSIGNMENT FORM
(To assign the foregoing Warrant, execute this form and supply required information. Do not use this form to purchase shares.)
FOR VALUE RECEIVED, the foregoing Warrant and all rights evidenced thereby are hereby assigned to
Name: | | |
| | (Please Print) |
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Address: | | |
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Phone Number: | | |
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Email Address: | | |
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Dated: _______________ __, ______ | | |
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Holder’s Signature: | | |
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Holder’s Address: | | |
Exhibit 4.28
WARRANT AGREEMENT SECOND AMENDMENT
THIS WARRANT AGREEMENT SECOND AMENDMENT (the “Agreement”) is made as of September 8, 2026.
BETWEEN: | GENERAL FUSION GROUP LTD., a British Columbia limited company (the “Company”) |
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AND: | ODYSSEY TRANSFER AND TRUST COMPANY, a Minnesota corporation (“Warrant Agent”) |
WHEREAS by a Warrant Agreement made on September 3, 2025, as amended by that certain Warrant Agreement Amendment, dated July 10, 2026, among the Company, Warrant Agent and Continental Stock Transfer and Trust Company (as amended, the “Warrant Agreement”), provision was made for the issue of warrants, subject to the terms and conditions contained in the Warrant Agreement (capitalized terms used but not defined herein shall have the meanings set forth in the Warrant Agreement);
AND WHEREAS the parties wish to execute this Agreement for the purpose of providing for the conversion of the Private Placement Warrants and Working Capital Warrants into Public Warrants once such Private Placement Warrants and Working Capital Warrants are transferred to a party other than a Permitted Transferee (as defined below); and
AND WHEREAS, pursuant to Section 9.8(iv) of the Warrant Agreement, the parties may amend the Warrant Agreement for the purposes described herein without the approval of any Registered Holders.
NOW THEREFORE This agreement witnesses that in consideration of the premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the parties hereto, the parties covenant and agree as follows:
1. | Amendment of the Warrant Agreement. The parties hereby amend, effective as of the date first written above, the Warrant Agreement as provided in this Section 1. |
1.1. | Private Placement Warrants and Working Capital Warrants. Section 2.6 of the Warrant Agreement is amended in its entirety as follows: |
“Private Placement Warrants and Working Capital Warrants. The Private Placement Warrants and the Working Capital Warrants shall be identical to the Public Warrants, except that so long as they are held by the Sponsor, a Representative, or a Permitted Transferee: (i) the Private Placement Warrants and the Working Capital Warrants may be exercised for cash or on a “cashless basis,” pursuant to subsection 3.3.1(b) hereof, (ii) the Private Placement Warrants, the Working Capital Warrants and the Class A Ordinary Shares issuable upon exercise of the Private Placement Warrants and the Working Capital Warrants may be subject to certain transfer restrictions contained in the letter agreement by and among the Company, the Sponsor and the other parties thereto, as amended from time to time, (iii) the Private Placement Warrants and the Working Capital Warrants shall
not be redeemable by the Company pursuant to Section 6.1 hereof and (iv) the holders of the Private Placement Warrants and the Working Capital Warrants (including the Class A Ordinary Shares issuable upon exercise of such warrants) may be entitled to certain registration rights.
For purposes of this Section 2.6, a “Permitted Transferee” shall mean (a) any officer, director, general partner, limited partner, shareholder, member, or owner of similar equity interests in the Sponsor or a Representative or (b) any affiliate of the Sponsor or a Representative or the immediate family (for purposes of this Agreement, “immediate family” shall mean with respect to any natural person, any of the following: such person’s spouse, the siblings of such person and his or her spouse, and the direct descendants and ascendants (including adopted and step children and parents) of such person and his or her spouses and siblings) of such affiliate.”
1.2. | Certain References. |
a. | References to Class A Ordinary Shares. All references to Class A Ordinary Shares shall mean common shares, without par value, of the Company. |
b. | References to amended and restated memorandum and articles of association. All references to amended and restated memorandum and articles of association shall mean the Articles of the Company. |
2. | Each party hereto agrees to execute and deliver all such documents and instruments and do such other acts as may be necessary or advisable to give effect to the terms hereof. |
3. | This Agreement is supplemental to the Warrant Agreement and shall be read in conjunction therewith. Except only insofar as the same may be inconsistent with the express provisions of this Agreement, all provisions of the Warrant Agreement shall apply to and shall have effect in the same manner as if they and the provisions of this Agreement were contained in one instrument. |
4. | The validity, interpretation, and performance of this Agreement and of the Warrants shall be governed in all respects by the laws of the State of New York. |
5. | This Agreement may be executed in any number of original or facsimile counterparts and each of such counterparts shall for all purposes be deemed to be an original, and all such counterparts shall together constitute but one and the same instrument. A signature to this Agreement transmitted electronically shall have the same authority, effect and enforceability as an original signature. |
6. | This Agreement shall inure to the benefit of and be binding upon the parties hereto and their successors and permitted assigns. |
[Signature page follows.]
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In witness whereof, this Agreement has been duly executed by the parties hereto as of the date first above written.
| GENERAL FUSION GROUP LTD. | |
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| By: | /s/ Greg Twinney |
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| Name: | Greg Twinney |
| Title: | Chief Executive Officer |
| ODYSSEY TRANSFER AND TRUST COMPANY | |
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| By: | /s/ Rebecca Paulsen |
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| Name: | Rebecca Paulsen |
| Title: | President |
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Exhibit 4.29
SIF AGREEMENT NO. 811-811346
Certain identified information has been excluded from this exhibit both because it (i) is not material and (ii) is the type that the issuer treats as private or confidential. Brackets with triple asterisks denote omissions.
STRATEGIC RESPONSE FUND
Magnetized Target Fusion: Advancing a Clean Energy Technology
AMENDED AND RESTATED CONTRIBUTION AGREEMENT
This Amended and Restated Agreement made
Between: | |
| HIS MAJESTY THE KING IN RIGHT OF CANADA (“His Majesty”) |
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| as represented by the Minister of Industry |
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| (the “Minister”) |
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And: | |
| General Fusion Inc., a corporation duly incorporated under the laws of British Columbia, having its head office located at 6020 Russ Baker Way, Richmond, BC V7B 1B4 |
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| (the “Recipient”) |
RECITALS
WHEREAS
I- | The Strategic Response Fund (“SRF”) (formerly known as the Strategic Innovation Fund (“SIF”)) is designed to encourage research and development, and accelerate the technology transfer and commercialization of innovative products, services, and processes; facilitate the growth and expansion of firms; secure economically significant mandates within or to Canada; and, advance industrial research and technology demonstration activities through collaboration; |
II- | Neither the entering into this Agreement nor the provision by the Minister of the Contribution is contingent upon export performance on the part of the Recipient; |
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SIF AGREEMENT NO. 811-811346
III- | The Project is in respect of SIF’s research and development (“R&D”) and commercialization Stream 1; |
IV- | The Project involves: |
| ● | R&D to further develop and test the commercial potential for an early TRL (as defined herein) concept or findings. |
| ● | Adaption of research findings for commercial applications that have the potential for market disruption. |
| ● | Development of current products through the implementation of new technology that will enhance the Recipient’s competitive capability. |
| ● | Development of process improvements which reduce the environmental footprint of current production through the use of new technologies. |
V. | The Minister and the Recipient entered into a contribution agreement (“Original Contribution Agreement”) made as of May 29, 2019 with the Recipient for a partially repayable contribution in support of the Recipient’s Eligible Costs (as defined herein) of the Project with total Project costs of one hundred fifty-three million two hundred seventy thousand eight hundred dollars ($153,270,800); |
VI. | The Original Contribution Agreement was subsequently amended on August 7, 2020, November 28, 2023, and January 21, 2025; |
VII. | The Minister and the Recipient has agreed, inter alia, to amend the Original Contribution Agreement to increase the amount of the Contribution (as defined herein) up to the maximum amount of seventy-four million two hundred seventy-five thousand dollars ($74,275,000) in support of the Recipient’s Eligible Costs (as defined herein) of the Project with an increased total Project cost of one hundred sixty-nine million four hundred seventy-one thousand dollars ($169,471,000); and |
VIII. | The Parties have agreed to amend and restate the Original Contribution Agreement, |
NOW, THEREFORE in accordance with the mutual covenants and agreements herein, His Majesty and the Recipient agree as follows:
1.Purpose of the Agreement
The purpose of this Agreement is to set out respective obligations and the terms and conditions under which the Minister will provide funding in support of the Project (as defined herein).
2.Interpretation
2.1Definitions.
In this Agreement, a capitalized term has the meaning given to it in this section, unless otherwise specified:
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SIF AGREEMENT NO. 811-811346
“Acceptance Period” is the five (5) Business Days following the date of delivery of a Sale Notice.
“Accredited Investor” in respect of any Person that is resident in Canada or any international jurisdiction other than the United States of America, means an accredited investor as defined in National Instrument 45-106 promulgated by the Canadian Securities Administrators, or in respect of any U.S. Person, means an accredited investor as defined in Rule 501(a) of Regulation D under the U.S. Securities Act.
“Acquisition or Divestiture” means an acquisition of a business, the sale of a business or a merger or amalgamation.
“Activity” means a significant task that must take place in order to complete the Project. It has duration, during which time the work of that task is performed, and may have resources and costs associated with that task as set out in Form C1- ELIGIBLE COSTS BREAKDOWN of Schedule 1 - Statement of Work.
“Additional Contribution” means the funding of up to five million Canadian dollars ($5,000,000 CAD) made available by the Minister under this Agreement in association with the Recipient’s refinancing of its Class B Preferred Shares in August 2025.
“Affiliated Person” means an affiliated person as defined in the Income Tax Act, as amended.
“Agency Contract Employees” means those individuals employed by an independent third party supplier of contract workers or other Canadian suppliers (such supplier being approved by the Recipient) and who are on an assignment performing work within the Recipient’s operations and are calculated the same way as an FTE.
“Agreement” means this amended and restated contribution agreement including all the Schedules attached hereto, as such may be amended, restated or supplemented, from time to time.
“Arms-length” has the meaning set out under the Income Tax Act (Canada).
“Background Intellectual Property” means Intellectual Property that is not Project Intellectual Property and that is required for the carrying out of the Project or the exploitation of the Project Intellectual Property.
“Background Intellectual Property Rights” means the Intellectual Property Rights in Background Intellectual Property.
“Benefits Commitments” means those activities described in Subsection 6.2 of this Agreement that will generate benefits to Canada.
“Benefits Phase” means the period from the Project Completion Date to and including the last day of the Term.
“Board” means the Board of Directors of the Recipient, as constituted from time to time.
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SIF AGREEMENT NO. 811-811346
“Business Day” means any day except a Saturday or Sunday and legal holidays for Canadian chartered banks in Vancouver, British Columbia.
“Capital Reorganization” means the Recipient changing its Share structure by way of: i) reclassifying existing Share classes; or ii) subdividing, redividing or changing its outstanding Shares into a greater number of Shares; or iii) reducing, combining or consolidating its outstanding Shares into a smaller number of Shares.
“Change in Control” of the Recipient means:
(a) | if the Recipient is a public company, the acquisition by an individual or company (or two or more of them acting in concert) that results in its or their direct or indirect beneficial ownership of twenty percent (20%) or more of outstanding shares of voting stock of the Recipient; or |
(b) | if the Recipient is a private company, the acquisition by an individual or company (or two or more of them acting in concert) that results in its or their direct or beneficial ownership of fifty percent (50%) or more of the voting stock in the Recipient; or |
(c) | if the Recipient enters into a binding obligation to sell, sells or otherwise disposes of all or substantially all of its assets. |
“Claim Period” means the following quarters of a calendar year: January 1 to March 31, April 1 to June 30, July 1 to September 30 and October 1 to December 31.
“Class B Common Shares” means the Class B (non-voting) Common shares in the capital of the Recipient.
“Class B Common Shares Warrants” means the warrants issued in the partial repayment of the Original Contribution.
“Class B1 Preferred Shares” means the new Series 1 Class B Preferred shares in the capital of the Recipient.
“Class B1 Preferred Shares Issue Price” means the issue price per Class B1 Preferred Share or US$1.587.
“Class B1 Preferred Shares Warrants” means the warrants issued in repayment of the Additional Contribution.
“Class B3 Preferred Shares” means the new Series 3 Class B Preferred shares in the capital of the Recipient.
“Class B3 Preferred Shares Issue Price” means the issue price per Class B3 Preferred Share or US$0.00001.
“Class B3 Preferred Shares Warrants” means the warrants issued in conjunction with the issuance of the Class B1 Preferred Shares Warrants.
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SIF AGREEMENT NO. 811-811346
“Collaboration” means the Recipient’s association with one or more Collaboration Partners for the purpose of research and development.
“Collaboration Partner” means, other than the Recipient and its sub-contractors, any small to medium sized Canadian-based enterprise, any Canadian research institute, any licensed or accredited academic, post-secondary institution in Canada that is/are involved in the Collaboration.
“Common Shares” means the common shares in the capital of the Recipient.
“Contribution” means the funding made available by the Minister under this Agreement.
“Co-op Term” means a four (4) month full-time position.
“Dispose” means, as regards a Project Asset, the transferring outside Canada, use for a purpose other than research and development by the Recipient, selling, leasing or otherwise disposing including, in the case of a prototype or pilot plant, the transfer to commercial production, but in any event, shall not include abandoning the Project Asset for legitimate business reasons, such as the disposal of obsolete or disused equipment or materials.
“Eligibility Date” means May 23, 2018.
“Eligible Costs” means the costs associated with work performed in Canada, or outside of Canada to the extent explicitly permitted in this Agreement that are incurred and paid by the Recipient in respect of the Project, and in accordance with Schedule 3 - Cost Principles, excluding:
(a) | any costs that are specifically identified in Schedule 1 - Statement of Work as not being supported; and |
(b) | any costs prohibited or deemed ineligible elsewhere in this Agreement. |
“Event of Default” means the events of default listed in Subsection 14.1 of this Agreement.
“Execution Date” means the date of the last signature to this Agreement such that the Agreement is signed and dated by all Parties.
“Facility” means the Recipient’s Project location in Richmond, British Columbia.
“Fair Market Value” means the price that would be agreed to in an open and unrestricted market between knowledgeable and willing parties dealing at arm’s length, who are fully informed and not under any compulsion to transact.
“Force Majeure” means any cause which is unavoidable or beyond the reasonable control of the Recipient, including war, riot, insurrection, strikes, or any act of God or other similar circumstance and which could not have been reasonably circumvented by the Recipient without incurring unreasonable cost.
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SIF AGREEMENT NO. 811-811346
“FTE” or “Full Time Equivalent” means each employee or, where applicable, intern, who works for the Recipient on a full-time basis (i.e. they are responsible to work at least 2,000 hours for the Recipient when calculated on an annual basis) and, in the case of hourly paid employees or interns who are responsible to work for the Recipient less than on a full-time basis, each equivalent to such a full-time worker, where the number of such equivalents is calculated by dividing (a) by (b) where (a) = the aggregate of all hours worked by such individuals for the Recipient including hours taken by them as paid vacation, sick leave, and for other similar reasons, calculated on an annual basis, and (b) = 2,000 hours.
“Fusion Demonstration Plant” has the meaning given to it in Schedule 1 – Statement of Work.
“Government Entity” means any agent corporation, Crown corporation or department as such terms are defined in the Financial Administration Act.
“Government Fiscal Year” means the period from April 1 of one year to March 31 of the following year.
“Government Funding” has the meaning set out in Subsection 7.1 of this Agreement.
“Highly Skilled” means an employee that requires specialized training in order to operate, manage or participate in the Project. This may include scientists, engineers, managers and specialized trades.
“Holder” means initially the Minister or its nominee or its assignee, or any Person to whom the Warrant has been Transferred in accordance with this Agreement.
“Intellectual Property” means all inventions, whether or not patented or patentable, all commercial and technical information, whether or not constituting trade secrets, and all copyrightable works, industrial designs, integrated circuit topographies, and distinguishing marks or guises, whether or not registered or registrable.
“Intellectual Property Rights” means all rights recognized by law in or to Intellectual Property, including but not limited to Intellectual Property rights protected through legislation. These shall include patents, copyrights, industrial design rights, integrated circuit topography rights, rights in trademarks and trade names, all rights in applications and registrations for any of the foregoing, and all rights in trade secrets and confidential information.
“Interest Rate” means the Bank Rate, as defined in the Interest and Administrative Charges Regulations, in effect on the due date, plus 300 basis points, compounded monthly. The Interest Rate for a given month can be found at:
http://www.tpsgc-pwgsc.gc.ca/recgen/txt/taux-rates-eng.html
“Jobs” means the aggregate of FTEs and Agency Contract Employees.
“Master Schedule” means a summary-level Project schedule that identifies the major Activities and work breakdown structure components and Milestones as reflected in Form A – Master Schedule (Gantt Chart) of Schedule 1 - Statement of Work.
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SIF AGREEMENT NO. 811-811346
“Material Change” is a significant change in the scope, objectives, outcomes or benefits of the Project including without limitation, the following:
(a) | The Project is not completed or not expected to be completed by the Project Completion Date; |
(b) | The Total Estimated Eligible Costs set out in Form C2 - ESTIMATED COST BREAKDOWN BY FISCAL YEAR of Schedule 1 - Statement of Work are expected to be reduced or are expected to be exceeded by twenty percent (20%) or more; |
(c) | A change in the locations where the Project is to be performed as identified in Form D - PROJECT LOCATION AND COSTS of Schedule 1- Statement of Work. |
“Milestone” means a significant point or event in the Project as set forth in Form B of Schedule 1 - Statement of Work.
“Not-Supported Eligible Costs” means those Eligible Costs that are not supported by the Contribution.
“Offer” means the offering to the Recipient the prior right to purchase, receive or acquire Warrants prior to any Transfer.
“Original Contribution” means the partially repayable contribution made available by the Minister in accordance with Subsection 4.1 of this Agreement.
“Party” means the Minister or the Recipient, and “Parties” means all of them.
“Person” means any individual, corporation, undertaking, partnership, trustee, trust or unincorporated association, joint venture, syndicate, sole proprietorship, executor, administrator, or other legal representatives, regulatory body, or agency, government, governmental agency, authority or entity, however designated or constituted.
“Price Per Class B Common Share” means the value per Class B Common Share calculated based on the distribution of available cash proceeds to each class of equity shareholder on a fully diluted basis that would result from a cash sale of the company calculated as the product of the most recent price per share in a Qualified Share Issuance multiplied by the number of Shares of the Recipient on a fully diluted basis. For greater certainty, only objectively quantifiable attributes of each class of Shares will be used to calculate the value of each Share class including Class B Common Shares.
“Project” means the project as described in Schedule 1 - Statement of Work.
“Project Asset” means an asset which, in whole or in part, has been acquired, created, developed, advanced and/or contributed to by the Contribution.
“Project Completion Date” means March 31, 2026.
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SIF AGREEMENT NO. 811-811346
“Project Intellectual Property” means all Intellectual Property conceived, produced, developed or reduced to practice in carrying out the Project by the Recipient and/or any Affiliated Persons of the Recipient, or any of their employees, agents, contractors or assigns.
“Project Intellectual Property Rights” means the Intellectual Property Rights in the Project Intellectual Property.
“Public Office Holder” means a public office holder as defined in the Lobbying Act, as amended.
“Qualified Share Issuance” means any arms-length Share issuance of the Recipient, closing in one or more tranches and resulting in gross proceeds to the Recipient of not less than USD $10,000,000.
“Recipient Fiscal Year” means the period for which the Recipient’s accounts in respect of its business or property are prepared for purposes of assessment under the Income Tax Act (Canada), as amended.
“Resulting Products” means all products, services or processes produced using the Project Intellectual Property or that incorporate any of the Project Intellectual Property.
“Sale Notice” means the written notice to the Recipient of an Offer.
“Schedule” means a schedule to this Agreement, including any amendments or supplements.
“Similar Goods” means goods or services that closely resemble the goods or services being transferred, in respect of their component materials, form, function and characteristics, and are capable of performing an equivalent function as, and of being commercially interchangeable with, the goods being transferred.
“Shares” means the shares in the capital of the Recipient.
Technology Readiness Level” or “TRL” means technology readiness according to the Technology Readiness Level scale described below.
Technology Readiness Level | | Description |
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TRL 1—Basic principles observed and reported | | Lowest level of technology readiness. Scientific research begins to be translated into applied research and development (R&D). Examples might include paper studies of a technology’s basic properties. |
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TRL 2—Technology concept and/or application formulated | | Invention begins. Once basic principles are observed, practical applications can be invented. Applications are speculative, and there may be no proof or detailed analysis to support the assumptions. |
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SIF AGREEMENT NO. 811-811346
TRL 3—Analytical and experimental critical function and/or characteristic proof of concept | | Active R&D is initiated. This includes analytical studies and laboratory studies to physically validate the analytical predictions of separate elements of the technology. |
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TRL 4—Product and/or process validation in laboratory environment | | Basic technological products and/or processes are tested to establish that they will work. |
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TRL 5—Product and/or process validation in relevant environment | | Reliability of product and/or process innovation increases significantly. The basic products and/or processes are integrated so they can be tested in a simulated environment. |
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TRL 6—Product and/or process prototype demonstration in a relevant environment | | Prototypes are tested in a relevant environment. Represents a major step up in a technology’s demonstrated readiness. Examples include testing a prototype in a simulated operational environment. |
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TRL 7—Product and/or process prototype demonstration in an operational environment | | Prototype near or at planned operational system and requires demonstration of an actual prototype in an operational environment (e.g. in a vehicle). |
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TRL 8—Actual product and/or process completed and qualified through test and demonstration | | Innovation has been proven to work in its final form and under expected conditions. In almost all cases, this TRL represents the end of true system development. |
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TRL 9—Actual product and/or process proven successful | | Actual application of the product and/or process innovation in its final form or function. |
“Term” means the duration of this Agreement as set out in Subsection 3.2 of this Agreement.
“Transfer” includes any sale, exchange, assignment, gift, bequest, disposition, mortgage, charge, pledge, encumbrance, grant of a security interest or other arrangement by which possession, legal title or beneficial ownership passes from one Person to another, or to the same Person in a different capacity, whether or not voluntarily and whether or not for value, and any agreement to effect any of the foregoing.
“Triggering Event” means, unless otherwise agreed to by the Recipient and the Minister, any of the following:
(a) | merger, amalgamation, plan of arrangement, or sale of the Recipient or its subsidiaries with or to another entity in one or a series of related transaction in which the then current shareholders of the Recipient do not own a majority of the voting power of the shares of the surviving or resulting corporation; |
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SIF AGREEMENT NO. 811-811346
(b) | the sale, lease, transfer, exclusive license, or other disposition of all or substantially all of the assets of the Recipient and its subsidiaries; |
(c) | the Recipient’s Shares are listed for trading on a stock exchange, such as a direct public offering or an initial public offering; or |
(d) | any voluntary or involuntary liquidation, dissolution or winding up of the Recipient or other distribution of assets of the Recipient among its shareholders for the purpose of winding up its affairs. |
“U.S. Person” means a U.S. person as defined in Rule 902 (k) of Regulation S under the U.S. Securities Act.
“U.S. Securities Act” means the United States Securities Act of 1933, as amended.
“Warrants” means the warrants issued by the Recipient entitling the Holder to acquire Class B1 Preferred Shares, Class B3 Preferred Shares or Class B Common Shares, as applicable, of the Recipient issuable to the Minister in accordance with Subsection 6.2 of this Agreement.
“Warrant Certificate” means the certificate in the form set out in Schedule A - Warrant Certificate and subject to the terms and conditions therein, issued to the Minister to receive the Warrants.
“Warrant Issuance Period” means the period commencing on the Eligibility Date and ending March 31, 2020 and thereafter, each Government Fiscal Year up to and including March 31, 2026.
“Warrant Valuation” means the Recipient’s most recent share price valuation as determined as of completion of each Qualified Share Issuance.
“Work Phase” means the period of time from the Eligibility Date to and including the Project Completion Date.
2.2Singular/Plural. Wherever from the context it appears appropriate, each term stated in either the singular or plural shall include the singular and the plural.
2.3Entire Agreement. Unless amended in writing by the Parties, this Agreement comprises the entire agreement between the Parties in relation to the Project. No prior document, negotiation, provision, undertaking or agreement in relation to the subject matter of this Agreement has legal effect. No representation or warranty, whether express, implied or otherwise, has been made by the Minister to the Recipient, except as expressly set out in this Agreement.
2.4Inconsistency. In case of inconsistency or conflict between a provision contained in the part of the Agreement preceding the signatures and a provision contained in any of the Schedules to this Agreement, the provision contained in the part of the Agreement preceding the signatures will prevail.
2.5Schedules. This Agreement contains the following Schedules as described below, which form an integral part of this Agreement:
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SIF AGREEMENT NO. 811-811346
Schedule 1 – Statement of Work
Schedule 2 – Communications Obligations
Schedule 3 – Cost Principles
Schedule 4 – Reporting Requirements
Schedule 5 – Repayments to the Minister - Warrants
Schedule 6 – Illustrative Warrant Example
Schedule 7 – Illustrative Capitalization Waterfall Valuation Analysis
Schedule A – Warrant Certificate
Schedule B – Warrant Exercise Subscription Form
2.6Amendment and Restatement. This Agreement amends and restates the Original Contribution Agreement in its entirety.
3.Duration of Agreement
3.1Execution. This Agreement must be signed by the Recipient and received by the Minister within thirty (30) days of its signature by the Minister, failing which it will be null and void.
3.2Term. This Agreement will commence on May 29, 2019 and will expire, subject to Subsection 3.3, five (5) years after the Project Completion Date, unless terminated earlier in accordance with the terms of this Agreement.
3.3 Survival Period. Notwithstanding the provisions of Subsection 3.2 above, the rights and obligations described in the following Sections or Subsections will survive for a period of three (3) years beyond the Term or early termination of the Agreement:
Section 7 - Government Funding
Subsection 8.5 - Overpayment by Minister
Section 9 - Reporting, Monitoring, Audit and Evaluation
Subsection 10.2(c) - Disposal of Assets
Subsection 13.1 - Indemnification
Subsection 13.2 - Limitation of Liability
Section 14 - Default and Remedies
Subsection 17.2 - Interest
Subsection 17.3 - Set-off Rights of Minister
Subsection 17.8 - Applicable Law
4.The Contribution
4.1Original Contribution. Subject to the terms and conditions of this Agreement, the Minister agrees to make a partially repayable Original Contribution to the Recipient in respect of the Project in an amount not exceeding the lesser of (a) and (b) as follows:
(a) | Fifty percent (50%) of the Eligible Costs; and |
(b) | Sixty-nine million two hundred and seventy-five thousand dollars ($69,275,000). |
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4.1.1Additional Contribution. Subject to the terms and conditions of this Agreement, the Minister agrees to make a fully repayable Additional Contribution to the Recipient in respect of the Project in an amount not exceeding the lesser of (a) and (b) as follows:
(a) | Fifty percent (50%) of the Eligible Costs; and |
(b) | Five million dollars ($5,000,000). |
4.2Funding Period. The Minister will not contribute to any Eligible Costs incurred by the Recipient prior to May 29, 2019 or after the Project Completion Date. In no event will Eligible Costs incurred prior to May 29, 2019 exceed twenty percent (20%) of the “Total Estimated Eligible Costs” set out in Form C2 - ESTIMATED COST BREAKDOWN BY FISCAL YEAR of Schedule 1 - Statement of Work.
4.3 Fiscal Year. The payment of the Contribution per Government Fiscal Year is estimated at amounts specified in Form C2 - ESTIMATED COST BREAKDOWN BY FISCAL YEAR of Schedule 1 - Statement of Work. The Minister will have no obligation to pay any amounts in any Government Fiscal Year other than those specified in Form C2 - ESTIMATED COST BREAKDOWN BY FISCAL YEAR of Schedule 1 - Statement of Work. If, for a given Government Fiscal Year, the Recipient claims an amount less than the estimated Contribution for that Government Fiscal Year specified in Form C2 - ESTIMATED COST BREAKDOWN BY FISCAL YEAR of Schedule 1 - Statement of Work, the Minister may consider any request to re-profile the excess funds to future Government Fiscal Years before the Project Completion Date.
4.4Overruns. The Recipient shall be responsible for all costs of the Project, including cost overruns, if any.
4.5Holdbacks. Notwithstanding any other provisions of this Agreement, the Minister may, at the Minister’s sole discretion, withhold up to nine percent (9%) of the Contribution until:
(a) | the Project is completed to the satisfaction of the Minister; |
(b) | the final report described in Subsection 8.3(c) has been submitted to the satisfaction of the Minister; |
(c) | the Minister has approved the final claim described in Subsection 8.3. |
5.Recipient’s Obligations
5.1Project Completion Date. The Recipient agrees to carry out the Project in a diligent and professional manner using qualified personnel, and complete the same on or before the Project Completion Date.
5.2Project Location. Except as otherwise permitted in Subsection 6.5 below, the Recipient agrees to carry out the Project exclusively in Canada located in Burnaby, British Columbia and/or in Richmond, British Columbia, and as set forth in FORM D – PROJECT LOCATION AND COSTS of Schedule 1.
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SIF AGREEMENT NO. 811-811346
5.3Benefits Commitments. The Recipient agrees to conduct Benefits Commitments exclusively in Canada.
5.4Repayment. The Recipient agrees to make all repayments due to the Minister as set out in Schedule 5 – Repayments to the Minister – Warrants.
5.5Compliance. The Recipient agrees to satisfy and comply with all other terms, conditions and obligations contained in this Agreement.
6.Special Conditions
The Recipient agrees to the following:
6.1Annual Pre-Disbursement Condition.
[***]
6.2Benefits Commitments.
The Recipient covenants and agrees to the following:
6.2.1Warrants.
In consideration for the Minister providing the Contribution, the Recipient agrees to repay, in part, the Original Contribution and in full the Additional Contribution by the issuance of fully paid up Warrants to the Minister with no consideration being payable by the Minister in accordance with the following terms:
(a) | The Recipient will issue Class B Common Shares Warrants to the Minister with each Warrant exchangeable for one (1) Class B Common Share of the Recipient representing a portion (as determined herein) of the total value of the Original Contribution paid by the Minister to the Recipient during each Warrant Issuance Period. |
(b) | In respect to each Warrant Issuance Period, the Class B Common Shares Warrants to be issued by the Recipient will be equal to the Original Contribution amount paid to the Recipient for that Warrant Issuance Period divided by Price Per Class B Common Share of the most recent Qualified Share Issuance. For greater certainty, in the event that no Qualified Share Issuance has occurred after the Eligibility Date, the Class B Common Shares Warrants to be issued by the Recipient will be equal to the Original Contribution amount paid to the Recipient for that Warrant Issuance Period divided by Price Per Class B Common Share of the most recent Shares of the Recipient prior to the Eligibility Date. |
i. | The value of Class B Common Shares Warrants issued by the Recipient to the Minister as repayment for a portion of the total value of the Original Contribution will be limited to a maximum amount of seventy-five percent (75%) of the total value of the Original Contribution paid to the Recipient or, if the Fusion Demonstration Plant is located in Canada, the total value of Class B Common Shares Warrants issuable by the Recipient to the Minister will be limited to a |
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maximum amount of sixty-five percent (65%) of the total value of the Original Contribution paid to the Recipient.
ii. | If the Fusion Demonstration Plant is to be located in Canada and the Recipient has already issued Class B Common Shares Warrants to the Minister on the basis of repayment of seventy-five percent (75%) of the Original Contribution for any Warrant Issuance Period, the Recipient and the Minister agree to carry out, prior to or concurrent with the first Warrant Issuance Period subsequent to the decision to locate the Fusion Demonstration Plant in Canada, a reconciliation of the Class B Common Shares Warrants issuable under this Agreement and make appropriate required adjustments to the total number of Class B Common Shares Warrants issued or issuable to reflect the total value of the Class B Common Shares Warrants being limited to sixty-five percent (65%) of the total Original Contribution. Schedule 6 – Illustrative Warrant Example to this Agreement provides an illustrative example of the intent of this warrant reconciliation and adjustment calculation. |
(c) | The Recipient will issue Class B1 Preferred Shares Warrants to the Minister at the Class B1 Preferred Shares Issue Price with each Warrant exchangeable for one (1) Class B1 Preferred Share of the Recipient representing the total value of the Additional Contribution paid by the Minister to the Recipient during each Warrant Issuance Period. In concurrence with the issuance of each Class B1 Preferred Shares Warrant, the Recipient will issue an additional twelve and five hundred forty-two thousandths (12.542) Class B3 Preferred Shares Warrants to the Minister with each Warrant exchangeable for one (1) Class B3 Preferred Share of the Recipient. |
(d) | The Warrants will expire immediately prior to the occurrence of a Triggering Event provided that: |
i. | if the consideration paid to the Recipient or the equity holders of the Recipient as a result of a Triggering Event is in cash, the Holder will receive a cash consideration for the Warrants equal to the per share price the holders of Common Shares, Class B1 Preferred Shares or Class B3 Preferred Shares, as applicable, would be entitled to receive under the Triggering Event multiplied by the number of Warrants held by the Holder concurrently with the completion of the Triggering Event and in a manner consistent with the payment of consideration under the Triggering Event to other holders of Class B1 Preferred Shares, Class B3 Preferred Shares and Common Shares; or |
ii. | if the consideration paid to the Recipient or the equity holders of the Recipient as a result of a Triggering Event, is in form of shares or other marketable securities, the Holder shall receive the same shares or other marketable securities as that provided to the other holders of Class B1 Preferred Shares, Class B3 Preferred Shares and Common Shares, provided that if the Holder is the Minister, the Minister shall receive a comparable replacement warrant for the same shares or other marketable securities as that provided to the other holders of Class B1 Preferred Shares, Class B3 Preferred Shares and Common Shares and with the same registration rights as specified in Subsection 6.2.2 (b) (vi). |
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(e) | Subject to paragraph 6.2.1 (b) (ii), the Recipient will provide a Warrant Certificate to the Minister in respect of the Class B Common Shares Warrants issued no later than thirty (30) days after the completion of each Warrant Issuance Period in respect of seventy-five percent (75%) of the total value of the Original Contribution. The Warrant Certificate will be accompanied by: |
i. | a legal opinion from the Recipient addressed to the Minister confirming the due and valid execution and delivery of the Warrant Certificate; and |
ii. | a confirmation by the Recipient’s external legal counsel addressed to the Minister of the Price Per Class B Common Share calculation. |
(f) | The Recipient will provide a Warrant Certificate to the Minister in respect of the Class B1 Preferred Shares Warrants and the Class B3 Preferred Shares Warrants issued no later than ten (10) Business Days after each claim reimbursement of the Additional Contribution is paid to the Recipient. The Warrant Certificate will be accompanied by a legal opinion from the Recipient’s legal counsel addressed to the Minister confirming the due and valid execution and delivery of the Warrant Certificate. |
(g) | With respect to each of the Class B Common Shares Warrants issued to the Minister prior to the Execution Date, the Recipient and the Minister agree that, notwithstanding any term to the contrary in the Warrant Certificates evidencing such Class B Common Shares Warrants, no adjustment to the number of Class B Common Shares issuable upon exercise of such Class B Common Shares Warrants or the effective exercise price thereof has occurred or will occur as a result of the restructuring transaction and subsequent equity financing undertaken by the Recipient and approved by its shareholders effective August 5, 2025 (the “2025 Recapitalization”), including without limitation the consolidation of outstanding shares of the Recipient and issuance of additional shares to investors participating in the 2025 Recapitalization. |
(h) | On January 21, 2026, the Recipient entered into a business combination agreement (“SPAC Agreement”) with Spring Valley Acquisition Corp. III, a Cayman Islands exempted company, which will continue into British Columbia as a BC company (such continued company, the “SPAC”), and 1573562 B.C. Ltd., a British Columbia limited company, pursuant to which, among other things (i) the Recipient will amalgamate with 1573562 B.C. Ltd., the resulting amalgamated company becoming a wholly owned subsidiary of the SPAC, and (ii) all of the outstanding equity securities of the Recipient, including the Shares and the Warrants, will be exchanged for equity securities of the SPAC (the “SPAC Transaction”). |
Notwithstanding Subsection 6.2.1(d) above, the Minister agrees that, until the earlier of (i) the closing of the SPAC Transaction or (ii) the termination of the SPAC Agreement in accordance with its terms, the Minister will not exercise any of the Warrants or undertake any action in respect of the Warrants that the Minister reasonably believes would materially interfere with, complicate, or prevent the completion of the SPAC Transaction. For clarity, any transfer of Warrants during this period will be made only to a Government Entity that agrees to be bound by the covenant set out in this Subsection 6.2.1 (h).
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6.2.2Representations, Warranties and Covenants with Respect to the Warrants
The Recipient hereby:
(a) | represents and warrants that as of the Execution Date: |
i. | The authorized capital of the Recipient includes an unlimited amount of Class B1 Preferred Shares; |
ii. | The authorized capital of the Recipient includes an unlimited amount of Class B3 Preferred Shares; |
iii. | The authorized capital of the Recipient includes an unlimited amount of Class B Common Shares; |
iv. | There are no provisions of the articles and by-laws, or any resolutions of the directors and shareholders of the Recipient or any agreement to which the Recipient is a party that will be contravened by the issuance of the Warrants as described herein in respect of which requisite approvals or waivers have not been obtained; and |
v. | There are no shareholders’ agreements entered into between the Recipient and its shareholders in respect of the rights, entitlements and obligations attaching to Shares, other than the Eighth Amended and Restated Shareholders’ Agreement dated August 6, 2025, as may be amended, restated or replaced from time to time. |
(b) | covenants and agrees that: |
i. | the Recipient will take all corporate action required to authorize the issuance of the Warrants in a timely fashion by the dates specified in Subsection 6.2.1 (e) and (f) above; |
ii. | prior to the Minister executing this Agreement, the Recipient’s legal counsel shall provide a legal opinion, at the Recipient’s cost, confirming that: |
| ◾ | Corporate power and capacity of the Recipient has the power and authority to enter into this Agreement; |
| ◾ | The signatories to this Agreement have been duly authorized to execute and deliver this Agreement; |
| ◾ | This Agreement constitutes a valid binding and legal obligation of the Recipient to issue the Warrants and the underlying securities; |
| ◾ | There are no other agreements that restrict the ability of the Recipient to issue the Warrants and the underlying securities; |
| ◾ | Execution, delivery and performance under the Agreement will not violate the Recipient’s Articles and by-laws, material agreements, applicable laws and any judgment; and |
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SIF AGREEMENT NO. 811-811346
iii. | until such time that the Recipient’s Shares are listed for trading on a stock exchange, the Recipient will consent to the Transfer of the Warrants by the Holder within five (5) Business Days of receiving notice by the Holder of any such proposed Transfer or assignment of the Warrants, provided that: |
A. | in the case where the Holder is in possession of less than one million (1,000,000) Warrants, the Recipient will allow for the Holder to Transfer less than one million (1,000,000) Warrants in a single block; in the case where the Holder is in possession of more than one million (1,000,000) Warrants, any Transfer must be for parts equal to or greater than one million (1,000,000) Warrants; |
B. | the Transfer of Warrants is not to a competitor of the Recipient, or a Person related to a competitor of the Recipient, as such determination is made by the Board of the Recipient, acting reasonably; |
C. | the Transfer of Warrants is to an Accredited Investor; and |
D. | the transferee shall agree to be bound by the provisions of the Warrant Certificate as if it were an original recipient of this Warrant Certificate; |
The foregoing subparagraph (iii) does not apply to any Transfer of Warrants issued hereunder or under the Original Contribution Agreement, by the Minister to another Government Entity notwithstanding the provisions of the Warrant Certificate.
iv. | the Recipient will take no actions and not enter into any agreements which will prevent or impair the Recipient’s ability to carry out the terms of this Agreement; |
v. | The Recipient will provide a valuation of the Class B Common Shares Warrants to be issued setting out the Warrant Valuation after the completion of each Qualified Share Issuance. The Minister may have the Warrant Valuation verified by an investment broker or independent financial professional; |
vi. | the Recipient shall register the Class B Common Shares for trading in connection with any listing of a direct public offering or an initial public offering of such Shares, and the Recipient shall promptly give the Minister notice of such registration, and such registration shall include all of the Class B Common Shares underlying the Warrants held by the Minister; and |
vii. | Until such time that the Recipient’s Shares are listed for trading on a stock exchange prior to any Transfer of the Warrants pursuant to paragraph 6.2.2 (b) (iii), the Minister agrees to Offer or cause to be Offered, to the Recipient the prior right to purchase, receive or acquire the Warrants, provided that the Offer shall be made Sale Notice to the Recipient specifying: (i) the total number of Warrants offered; (ii) any other terms and conditions applicable to the Offer, including whether the Offer can be accepted in whole or in part; and (iii) whether or not the Minister has |
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received a third party offer to purchase any of the Warrants (in which case the third party offer shall be attached to the Sale Notice). Following the Acceptance Period within which to give to the Holder written notice that it accepts the Offer and agrees to purchase all or a portion of the Warrants. Notwithstanding the foregoing, the Minister may Transfer the Warrants issued hereunder or under the Original Contribution Agreement to another Government Entity without making an Offer to the Recipient pursuant to this Subparagraph, notwithstanding the provisions of the Warrant Certificate. The Minister will inform the Recipient of the Transfer.
6.2.3Create and Maintain R&D Jobs.
[***]
6.2.4Demonstration Plant.
[***]
6.2.5Minimum R&D Investment.
The Recipient is committed to investing at least $[***] during the Work Phase in activities including but not limited to staff employment, operations, general and administrative activities, related consulting and contracted services, research and development, capital expenditures, and other expenses required to develop the Recipient’s technology, business assets, and Intellectual Property.
6.2.6Collaborations.
(a) | [***] |
(b) | [***] |
6.2.7Hiring Practices and Employee Training.
[***]
6.2.8Intellectual Property strategy.
(a) | The Recipient will adopt and implement an Intellectual Property strategy to create and retain Project Intellectual Property in Canada, including providing related educational awareness training for employees; and will provide the strategy to the Minister within twelve (12) months of May 29, 2019; |
(b)Ownership and exploitation of the Project Intellectual Property Rights shall remain in Canada during the Term or unless as otherwise agreed to by the Minister;
(c) | The Recipient will obtain any Background Intellectual Property Rights that is necessary to carry out the Project. Any Intellectual Property Rights arising from the activities of the Recipient in carrying out the Project will be owned by the Recipient, or any Affiliated |
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Person of the Recipient. The Recipient will ensure that these affiliates comply with these provisions;
(d)The Recipient will actively monitor the landscape of fusion technology patents through the continued employment of [***]and will report annually on these activities during the Term;
(e)Throughout the Work Phase, the Recipient will grow its portfolio of Intellectual Property Rights from the current [***]patents to approximately [***] patents and will continue to apply best practices to thoroughly and expeditiously protect all resulting Intellectual Property Rights. The Recipient will also continue to engage with Canadian patent agents when filing patents.
6.2.9Other: Additional Prototype Demonstration Program Phases.
[***]
6.2.10Canadian Suppliers to the Recipient.
The Recipient shall use best efforts to identify and to develop locally based suppliers capable of meeting its needs aligned with the Project activities.
6.3Strategic Plan.
(a) | [***] |
(b) | [***] |
(c) | [***] |
6.4Annual Reporting.
[***]
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SIF AGREEMENT NO. 811-811346
6.5Project Work outside Canada.
[***]
6.6 | Facility Closure Mandatory Repayment. |
[***]
6.7 | Amendment. |
The Recipient shall provide written notice to the Minister of any Material Changes which may have an impact on Schedule 1 – Statement of Work or on the Benefits Commitments. The Recipient shall provide to the satisfaction of the Minister sufficient written reasons to justify modifications to the Agreement. The Parties agree to negotiate in good faith such amendments.
7.Government Funding
7.1The Recipient represents that the list below states all funding from federal, provincial, territorial or municipal governments in Canada (“Government Funding”), requested or received by the Recipient or that the Recipient currently expects to request or receive to cover any of the Eligible Costs. The list below excludes provincial and federal investment tax credits.
Federal | $74,275,000 (SIF) | |
Federal | $[***] (Business Development Bank of Canada & Canadian Nuclear Laboratories) | |
Provincial | $[***] (British Columbia) | |
Territorial | $[***] | |
Municipal | $[***] | |
| | |
Total | $[***] | |
7.2The Recipient shall inform the Minister of any change to the amount of Government Funding identified in Subsection 7.1. The Recipient shall also inform the Minister of any provincial and federal investment tax credits, received or expected to be received by the Recipient for the Eligible Costs. Such notice must be made promptly in writing, and in any case not later
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than thirty (30) days following any change. In the event of additional Government Funding, the Minister will have the right to either reduce the Contribution to the extent of any additional funding received by the Recipient or require the Recipient to repay the Contribution hereunder equal to the amount of any such additional funding received by the Recipient in accordance with Subsection 8.5.
7.3[***]
8.Claims and Payments
8.1Separate Records. The Recipient shall maintain accounting records that account for the Contribution paid to the Recipient and the related Project costs, separate and distinct from any other sources of funding.
8.2Claims Procedures. The Minister will reimburse claims for Eligible Costs submitted for a Claim Period, provided there is no uncured Event of Default and the claims are:
(a) | submitted for each Claim Period, except for the first claim which will start on the Eligibility Date; |
(b) | submitted within forty-five (45) days of the end of each Claim Period; |
(c) | accompanied with details of all costs being claimed according to Schedule 3 – Cost Principles, which have been incurred by the Recipient and which will be substantiated by such documents as may be required by the Minister and presented in accordance with the Activities and the Milestones contained Schedule 1 - Statement of Work; |
(d) | certified, in a form satisfactory to the Minister, by the chief financial officer of the Recipient or such other person considered satisfactory to the Minister; |
(e) | adjusted, if necessary, by including a deduction for expenses included in a previous claim which were not eligible expenses according to Eligible Costs definition in this Agreement or which were not paid by the Recipient; |
(f) | accompanied by a report containing: |
i. | the Recipient’s revised projections of the Project cash flows for the current Government Fiscal Year; |
ii. | an identification of any planned or completed transfer to commercial production, transfer outside of Canada, sale, lease or other disposal of equipment funded in whole or in part by the Contribution; |
iii. | an itemized list of foreign sub-contracting costs, if any; |
iv. | the foreign exchange rates used in the claim; |
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v. | progress report as specified in Subsection 1.2 of Schedule 4 - Reporting Requirements; and |
vi. | such other information as the Minister may request from time to time. |
(g) | accompanied by a statement from the Recipient repeating and confirming the representations set out in Section 10 of this Agreement as required by Subsection 10.3, and a certification that there is no uncured Event of Default (and no state of facts exist which, with the giving of notice or the passing of time, or both, would constitute an Event of Default); |
(h) | substantially (± ten percent (10%) consistent with the cost estimates of Schedule 1 - Statement of Work; and |
(i) | accompanied by the Recipient’s travel policy (first claim only). |
8.3 | Final Claim Procedures. |
The Recipient shall submit, within forty-five (45) days after the Project Completion Date, the final claim along with:
(a) | an itemized statement certified by the Recipient’s chief financial officer, or such other person considered satisfactory to the Minister, attesting to the total Eligible Costs for the Project incurred and paid; |
(b) | a statement of the total government assistance (federal, provincial and municipal assistance as well as tax credits) received or requested to cover the Eligible Costs of the Project; and |
(c) | a final progress report on the Project, as more fully described in Subsection 1.3 of Schedule 4 - Reporting Requirements. |
8.4 | Payment Procedures. |
(a) | The Minister shall review and approve the documentation submitted by the Recipient following the receipt of the Recipient’s claim and in the event of any deficiency in the documentation, the Minister will notify the Recipient and the Recipient shall immediately take action to address and rectify the deficiency. |
(b) | Subject to the maximum Contribution amounts set forth in Subsection 4.1 and all other conditions contained in this Agreement, the Minister shall pay to the Recipient a percentage of the Eligible Costs set forth in the Recipient’s claim based on the sharing ratio identified in Form C2 - ESTIMATED COST BREAKDOWN BY FISCAL YEAR, in accordance with the Minister’s customary practices. |
(c) | The Minister may request at any time that the Recipient provide satisfactory evidence to demonstrate that all Eligible Costs claimed have been paid. |
8.5 | Overpayment by Minister. Where the Minister determines that the amount of the |
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Contribution disbursed exceeds the amount to which the Recipient is entitled, the Recipient shall repay to the Minister, promptly and no later than thirty (30) days from notice from the Minister, the amount of the overpayment together with interest at the Interest Rate from the date of the notice to the day of payment to the Minister in full. Any such amount is a debt due to His Majesty and is recoverable as such.
9.Reporting, Monitoring, Audit and Evaluation
9.1Reports. The Recipient agrees to provide the Minister with the reports as described in Schedule 4 - Reporting Requirements, to the Minister’s satisfaction.
9.2Additional Information. Upon request of the Minister and at no cost to the Minister, the Recipient shall promptly elaborate upon any report submitted or provide such additional information as may be requested.
9.3Minister’s Right to Audit Accounts and Records. The Recipient shall, at its own expense, maintain and preserve in Canada and make available for audit and examination by the Minister or the Minister’s representatives all books, accounts and records relating to this Agreement or the Project held by the Recipient, its Affiliated Persons and agents of the information necessary to ensure compliance with the terms and conditions of this Agreement, including repayment to the Minister. The Minister will have the right to conduct such audits at the Minister’s expense as may be considered necessary.
Unless otherwise agreed to in writing by the Minister, the Recipient and its Affiliated Persons and agents shall maintain and preserve all books, accounts, invoices, receipts and records and all other documentation related to this Agreement until the end of the Recipient Fiscal Year that ends seven (7) years after the fiscal year of the date on which they were created.
9.4Auditor General Rights. The Recipient recognizes, acknowledges and accepts that the Auditor General of Canada may, at the Auditor General’s cost, after consultation with the Recipient, conduct an inquiry under the authority of Subsection 7.1 (1) of the Auditor General Act in relation to any funding agreement (as defined in Subsection 42 (4) of the Financial Administration Act) with respect to the use of the Contribution received.
For the purposes of any such inquiry undertaken by the Auditor General, the Recipient shall provide, upon request and in a timely manner, to the Auditor General or anyone acting on behalf of the Auditor General,
(a) | all records held by the Recipient, its Affiliated Persons or agents relating to this Agreement and the use of the Contribution provided under this Agreement; and |
(b) | such further information and explanations as the Auditor General, or anyone acting on behalf of the Auditor General, may request relating to this Agreement or the use of the Contribution. |
9.5Access to Records. The Recipient shall, at all times, ensure that its agents, employees, assigns and Affiliated Persons are obligated to provide to the Minister or the Auditor General or their authorized representatives records and other information that are in possession of those
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agents, employees, assigns and Affiliated Persons and that relate to this Agreement or to the use of the Contribution.
9.6Access to Premises. The Recipient and its Affiliated Persons shall provide the representatives of the Minister reasonable access to premises to inspect and assess the progress of the Project or any element thereof and supply promptly on request such data as the Minister may reasonably require for statistical or Project evaluation purposes.
9.7Evaluation. The Recipient shall, at its own expense, participate in the preparation of case studies reporting on the outcomes of the Project, to be completed by the Minister or the Minister’s agents, in order to assist in the Minister’s preparation of an overall evaluation of the value and effectiveness of SIF.
10.Representations, Warranties and Covenants
10.1Representations. The Recipient represents and warrants that:
(a) | it is duly incorporated under laws of the Province of British Columbia and validly existing and in good standing and has the power and authority to carry on its business, to hold property and to enter into this Agreement and undertakes to take all necessary action to maintain itself in good standing, to preserve its legal capacity and to remain incorporated in a Canadian jurisdiction; |
(b) | signatories to the Agreement have been duly authorized to execute and deliver this Agreement; |
(c) | the execution, delivery and performance of this Agreement have been duly and validly authorized and that when executed and delivered, the Agreement will constitute a legal, valid and binding obligation enforceable in accordance with its terms; |
(d) | it is under no obligation or prohibition, nor is it subject to or threatened by any actions, suits or proceedings that could or would prevent compliance with the Agreement. The Recipient shall inform the Minister forthwith of any such occurrence; |
(e) | the execution and delivery of this Agreement and the performance by the Recipient of its obligations hereunder will not, with or without the giving of notice or the passage of time or both: |
i. | violate the provisions of the Recipient’s by-laws, any other corporate governance document subscribed to by the Recipient or any resolution of the Recipient; |
ii. | violate any judgment, decree, order or award of any court, government agency, regulatory authority or arbitrator; or |
iii. | conflict with or result in the breach or termination of any material term or provision of, or constitute a default under, or cause any acceleration under, any license, permit, concession, franchise, indenture, mortgage, lease, equipment lease, |
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contract, permit, deed of trust or any other instrument or agreement by which it is bound;
(f) | it has obtained or will obtain all necessary licences and permits in relation to the Project, which satisfy the requirements of all regulating bodies of appropriate jurisdiction; |
(g) | it owns or holds sufficient rights in any Background Intellectual Property required to carry out the Project; and |
(h) | the description of the Project in Schedule 1 - Statement of Work is complete and accurate. |
10.2Covenants. The Recipient covenants and agrees that:
(a) | it is solely responsible for providing or obtaining the funding, in addition to the Contribution, required to carry out the Project and the fulfilment of the Recipient’s other obligations under this Agreement; |
(b) | no Material Change within the control of the Recipient will be made without the prior written consent of the Minister. In the event that the Minister does not consent to such a Material Change, the Minister may, at the Minister’s discretion, terminate the Agreement and be subject to Subsection 14.3; |
i. | In the case where the Recipient is a private company, the Recipient shall notify the Minister, in writing, no later than thirty (30) days prior to the date from which the Recipient expects to have a Change in Control, and the Minister will confirm no later than thirty (30) days after receiving notification from the Recipient if it consents to the Change in Control. Subject to Subsection 17.13, consent will not be unreasonably withheld. |
ii. | In the case where the Recipient is a public company, the Recipient shall notify the Minister, in writing, of any Change in Control no later than thirty (30) days following any Change in Control. |
iii. | Prior to providing consent, the Minister may, as a result of notification of the Change in Control, require additional due diligence to determine the impacts of the Change in Control, such as the following, but not be limited to: the legal status of the Recipient pursuant to the SIF’s program terms and conditions; the impact on the Recipient’s finances and the Project to ensure that the Recipient is able to complete the Project; and, any other considerations that may emerge. The purpose of the due diligence is to ensure that the Minister can fully evaluate any additional considerations that were not identified at the time of authorizing the funding. In the event that the Minister does not consent to such a Change in Control, the Minister may, at the Minister’s discretion, terminate the Agreement and be subject to Subsection 14.3; |
(c) | it shall retain possession and control of all Project Assets the cost of which has been contributed to by the Minister under the Agreement, and the Recipient shall not Dispose of the same without the prior written consent of the Minister, other than in the ordinary course of business |
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where the aggregate book value of such Project Assets for each occurrence is less than [***];
(d) | it shall, in advance and in writing, and subject to paragraphs 10.2 (b) and (c) of this Agreement, notify the Minister in the event of any Acquisition or Divestiture. In the case where the Recipient is a public company, the Recipient shall notify the Minister in writing of any Acquisition or Divestiture contemporaneously with any press release, or filing of a public regulatory notice in respect of such Acquisition or Divestiture; |
(e) | it shall not make any dividend payments or other shareholder distributions that would prevent it from implementing the Project or satisfying any other of the Recipient’s obligations under this Agreement, including, without limitation, the making of repayments to the Minister hereunder; |
(f) | it shall comply with the federal visibility requirements set out in Schedule 2 - Communications Obligations; and |
(g) | it shall comply with all laws and regulations applicable to it. |
10.3Renewal of Representations. It is a condition precedent to any disbursement under this Agreement that the representations, warranties and covenants contained in this Agreement are true at the time of payment and that the Recipient is not in default of compliance with any terms of this Agreement.
11.Intellectual Property
11.1Background Intellectual Property. The Recipient must own the Background Intellectual Property or hold sufficient Background Intellectual Property Rights to permit the Project to be carried out and the Project Intellectual Property to be exploited by the Recipient.
11.2Project Intellectual Property. Ownership and exploitation of the Project Intellectual Property to which the Minister has contributed, and the ownership of Project Intellectual Property Rights therefor, shall remain in Canada during the Term of this Agreement unless otherwise agreed to by the Minister.
11.3 License of Project Intellectual Property. The Recipient agrees not to grant any right or license to any Project Intellectual Property other than in the ordinary course of the Recipient’s business without the prior written consent of the Minister, such consent to not be unreasonably or arbitrarily withheld.
11.4Protection of Project Intellectual Property. The Recipient shall take steps to protect and enforce the Project Intellectual Property. The Recipient shall provide information to the Minister in that regard, upon request.
11.5Crown Ownership of Intellectual Property. The Crown will not have an ownership interest in the Project Intellectual Property nor will the Crown acquire new rights in Background Intellectual Property by virtue solely of having provided the Contribution. Rights attributed to the Crown in any other way including under the Public Servants Inventions Act are not in any way
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affected by this Agreement.
12.Environmental and Other Requirements
12.1The Recipient represents that the Project is not a “designated project” and is not being carried out on “federal lands” as such terms are defined in the Impact Assessment Act, 2019 (“IAA”).
12.2The Recipient shall, in respect of the Project, comply with all federal, provincial, territorial, municipal and other applicable laws, including but not limited to, statutes, regulations, by-laws, rules, orders, ordinances and decrees governing the Recipient or the Project, or both, relating to environmental protection and the successful implementation of and adherence to any mitigation measures, monitoring or follow-up program that may be prescribed by the Minister or other federal, provincial, territorial, municipal tribunals or bodies, and certifies to the Minister that it has done so to date.
12.3The Recipient will provide the Minister with reasonable access to any Project site for the purpose of ensuring that the terms and conditions of any environmental approval are met, and that any mitigation, monitoring or follow-up measure required has been carried out.
12.4If as a result of changes to the Project or otherwise, an assessment is required in accordance with IAA for the Project, the Minister and the Recipient agree that the Minister’s obligations under this Agreement will be suspended from the moment that the Minister informs the Recipient, until (i) a decision statement has been issued to the Recipient or, if applicable, the Minister has decided that the Project is not likely to cause significant adverse environmental effects or the Governor in Council has decided that the significant adverse environmental effects are justified in the circumstances, and (ii) if required, an amendment to this Agreement has been signed, setting out any conditions included in the decision statement.
12.5Aboriginal consultation. The Recipient acknowledges that the Minister’s obligation to pay the Contribution is conditional upon His Majesty satisfying any obligation that His Majesty may have to consult with or to accommodate any Aboriginal groups, which may be affected by the terms of this Agreement.
12.6 Official Languages. The Recipient agrees that any public acknowledgement of the Minister’s public support for the Project will be expressed in both official languages.
13.Indemnification and Limitation of Liability
13.1Indemnification. Except for any claims arising from the gross negligence of, or willful misconduct by, the Minister’s employees, officers, agents or servants, the Recipient agrees, at all times, to indemnify and save harmless, the Minister and any of his officers, servants, employees or agents from all and against all claims and demands, actions, suits or other proceedings (and all losses, costs and damages relating thereto) by whomsoever made, brought or prosecuted (all of the foregoing collectively, the “Claims”), where such Claims are asserted or arise from the Minister being a Party to this Agreement and exercising his rights and performing his obligations under this Agreement, to the extent such Claims result from:
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(a) | the Project, its operation, conduct or any other aspect thereof; |
(b) | the performance or non-performance of this Agreement, or the breach or failure to comply with any term, condition, representation or warranty of this Agreement by the Recipient, its Affiliated Persons, its officers, employees and agents, or by a third party or its officers, employees, or agents; |
(c) | the design, construction, operation, maintenance and repair of any part of the Project; or, |
(d) | any omission or other wilful or negligent act or delay of the Recipient, its Affiliated Person or a third party and their respective employees, officers, or agents. |
13.2Limitation of Liability. Notwithstanding anything to the contrary contained herein, neither the Minister or the Recipient shall be liable for any indirect, special or consequential damages, for loss of revenues or profits arising from, based upon, occasioned by or attributable to the execution of this Agreement or performance under this Agreement, regardless of whether such a liability arises in tort (including negligence), contract, fundamental breach or breach of a fundamental term, misrepresentation, breach of warranty, breach of fiduciary duty, indemnification or otherwise. The maximum liability of the Recipient under this Agreement shall be limited to the total amount of the Contribution, together with interest from the day of demand at the Interest Rate, repayable by the Recipient under this Agreement.
13.3His Majesty, his agents, employees and servants will not be held liable in the event the Recipient enters into a loan, a capital or operating lease or other long-term obligation in relation to the Project for which the Contribution is provided.
14.Default and Remedies
14.1Event of Default. The Minister may declare that an Event of Default has occurred if:
(a) | the Recipient has failed or neglected to pay His Majesty any amount due in accordance with this Agreement; |
(b) | the Project is not completed in accordance with Schedule 1 – Statement of Work to the Minister’s satisfaction by the Project Completion Date or the Project is abandoned in whole or in part; |
(c) | the Recipient has not, in the opinion of the Minister, met or satisfied a term, covenant or condition of this Agreement; |
(d) | the Recipient becomes bankrupt or insolvent, goes into receivership, or takes the benefit of any statute, from time to time in force, relating to bankrupt or insolvent debtors; |
(e) | an order is made or the Recipient has passed a resolution for the winding up or dissolution of the Recipient, or the Recipient is dissolved or wound up; |
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(f) | the Recipient has, in the opinion of the Minister, ceased to carry on business or has sold all or substantially all of its assets or enters into a letter of intent or binding obligation to sell all or substantially all of its assets; |
(g) | the Recipient has not met or satisfied a term or condition under any other contribution agreement or agreement of any kind with His Majesty; |
(h) | the Recipient fails to fulfill any of the contractual obligations set out in this Agreement; |
(i) | a representation, covenant, warranty or statement contained herein or in any document, report or certificate delivered to the Minister hereunder or in connection therewith is false or misleading at the time it was made; and |
(j) | the Recipient fails to comply with the obligations regarding audit and evaluation, as set out in Section 9. |
14.2Notice and Rectification Period. Except in the case of an Event of Default under paragraphs (d), (e) and (f) of Subsection 14.1 above, the Minister will not declare that an Event of Default has occurred unless the Minister has given written notice to the Recipient of the occurrence which, in the Minister’s opinion, constitutes an Event of Default and the Recipient fails, within thirty (30) days of receipt of the notice, either to correct the condition or event or demonstrate, to the satisfaction of the Minister that it has taken such steps as are necessary to correct the condition, failing which the Minister may declare that an Event of Default has occurred.
14.3Remedies on Default. If the Minister declares that an Event of Default has occurred, the Minister may immediately exercise one or more of the following remedies, in addition to any remedy available at law:
(a) | suspend or terminate any obligation by the Minister to contribute or continue to contribute to the Eligible Costs including any obligation to pay any amount owing prior to the date of such suspension; |
(b) | require the Recipient to repay to the Minister all or part of the Contribution disbursed by the Minister, together with interest from the day of demand at the Interest Rate; |
(c) | require the Recipient to pay the Minister the total of all amounts required to be repaid pursuant to this Agreement in the form of cash, less any amount already repaid to the Minister together with interest from the day of demand at the Interest Rate; |
(d) | terminate the Agreement; and |
(e) | post a notice on a Government of Canada website disclosing that the Recipient has committed an Event of Default under the provisions of this Agreement and describing generally the remedies, if any, that the Minister has accordingly exercised. |
14.4The Recipient acknowledges the policy objectives served by the Minister’s agreement to make the Contribution, that the Contribution comes from the public monies, and that the amount of damages sustained by His Majesty in an Event of Default is difficult to ascertain and therefore,
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that it is fair and reasonable that the Minister be entitled to exercise any or all of the remedies provided for in this Agreement and to do so in the manner provided for in this Agreement, if an Event of Default occurs.
14.5For greater certainty, a Triggering Event will not prevent the Minister’s right to exercise any and all remedies provided for in this Agreement.
15.Miscellaneous
15.1 | Compliance with Lobbying Act. The Recipient warrants and represents: |
(a) | that it has filed all Lobbying Act returns required to be filed in respect of persons employed by the Recipient who communicate and/or arrange meetings with Public Office Holders as part of their employment duties, and that it will continue to do so; |
(b) | that it has not contracted with any person to communicate and/or arrange meetings with Public Office Holders for remuneration that is or would be contingent in any way upon the success of such person arranging meetings with Public Office Holders, or upon the approval of the Recipient’s application for SIF funding, or upon the amount of SIF funding paid or payable to the Recipient under this Agreement; |
(c)that it will not contract with any person to communicate and/or arrange meetings with Public Office Holders for remuneration that is or would be contingent upon the success of such person arranging meetings with Public Office Holders, or upon the amount of SIF funding paid or payable to the Recipient under this Agreement;
(d) | all persons who are or have been contracted by the Recipient to communicate and/or arrange meetings with Public Office Holders in respect of this Agreement are in full compliance with the registration and other requirements of the Lobbying Act; and |
(e) | it shall at all times ensure that any persons contracted to communicate and/or arrange meetings with Public Office Holders in respect of the Agreement are in full compliance with the requirements of the Lobbying Act. |
15.2Members of Parliament. The Recipient represents and warrants that no member of the House of Commons will be admitted to any share or part of this Agreement or to any benefit to arise therefrom. No person who is a member of the Senate will, directly or indirectly, be a party to or be concerned in this Agreement.
15.3Compliance with Post-Employment Provisions. The Recipient confirms that no current or former public servant or public office holder to whom the Values and Ethics Code for the Public Service, the Values and Ethics Code for the Public Sector, the Policy on Conflict of Interest and Post-Employment or the Conflict of Interest Act apply, will derive a direct benefit from this Agreement unless the provision or receipt of such benefits is in compliance with such legislation and codes.
15.4The Recipient acknowledges that the representations and warranties in this section are fundamental terms of this Agreement. In the event of breach of these, the Minister may exercise
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the remedies set out in Subsection 14.3.
16.Confidentiality.
16.1Consent Required. Subject to Schedule 2 - Communications Obligations, the Access to Information Act, the Privacy Act and the Library and Archives Act of Canada, each Party shall keep confidential and shall not without the consent of the other Party disclose the contents of the Agreement and the documents pertaining thereto, whether provided before or after the Agreement was entered into, or of the transactions contemplated herein.
16.2International Dispute. Notwithstanding Subsection 16.1 of this Agreement, the Recipient waives any confidentiality rights to the extent such rights would impede His Majesty from fulfilling his notification obligations to a world trade panel for the purposes of the conduct of a dispute, in which His Majesty is a party or a third party intervener. The Minister is authorized to disclose the contents of this Agreement and any documents pertaining thereto, whether predating or subsequent to this Agreement, or of the transactions contemplated herein, where in the opinion of the Minister, such disclosure is necessary to the defence of His Majesty’s interests in the course of a trade remedy investigation conducted by a foreign investigative authority, and is protected from public dissemination by the foreign investigative authority. The Minister shall notify the Recipient of such disclosure.
16.3Financing, Licensing and Subcontracting. Notwithstanding Subsection 16.1 of this Agreement, the Minister hereby consents to the Recipient disclosing this Agreement, and any portion or summary thereof, for any of the following purposes:
(a) | securing additional financing; |
(b) | licensing for commercial exploitation; or |
(c) | confirming to agents, contractors and subcontractors of the Recipient that all agents, contractors and subcontractors must agree to provide the Minister and the Auditor General with access to their records and premises, provided that any person to whom this Agreement or any portion or summary thereof is disclosed shall execute a non-disclosure agreement prior to such disclosure. |
17.General
17.1Debt due to Canada. Any amount owed to His Majesty under this Agreement shall constitute a debt due to His Majesty and shall be recoverable as such. Unless otherwise specified herein, the Recipient agrees to make payment of any such debt forthwith on demand.
17.2Interest. Debts due to His Majesty will accrue interest in accordance with the Interest and Administrative Charges Regulations, in effect on the due date, compounded monthly on overdue balances payable, from the date on which the payment is due, until payment in full is received by His Majesty. Any such amount is a debt due to His Majesty and is recoverable as such.
17.3Set-off Rights of Minister. Without limiting the scope of the set-off rights provided for under the Financial Administration Act, it is understood that the Minister may set off against the
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Contribution any amounts owed by the Recipient to the Minister under legislation or contribution agreements and the Recipient shall declare to the Minister all amounts outstanding in that regard when making a claim under this Agreement.
17.4No Assignment of Agreement. No Party shall assign the Agreement or any part thereof without the prior written consent of the Minister. Any attempt by a Party to assign this Agreement or any part thereof, without the express written consent of the Minister, is void.
17.5Annual Appropriation. Any payment by the Minister under this Agreement is subject to there being an appropriation for the Government Fiscal Year in which the payment is to be made; and to cancellation or reduction in the event that departmental funding levels are changed by Parliament. If the Minister is prevented from disbursing the full amount of the Contribution due to a lack or reduction of appropriation or departmental funding levels, the Minister and the Recipient agree to review the effects of such a shortfall in the Contribution on the implementation of this Agreement.
17.6Successors and Assigns. This Agreement is binding upon the Recipient, its successors and permitted assigns.
17.7Event of Force Majeure. The Recipient will not be in default by reason only of any failure in the performance of the Project in accordance with Schedule 1 – Statement of Work if such failure arises without the fault or negligence of the Recipient and is caused by any event of Force Majeure.
17.8Applicable Law. This Agreement will be interpreted in accordance with the laws of the province of British Columbia and federal laws of Canada applicable therein.
17.9Dispute Resolution. If a dispute arises concerning the application or interpretation of this Agreement, the Parties will attempt to resolve the matter through good faith negotiation, and may, if necessary and the Parties consent in writing, resolve the matter through mediation or arbitration by a mutually acceptable mediator or by arbitration in accordance with the Commercial Arbitration Code set out in the schedule to the Commercial Arbitration Act (Canada), as amended, and all regulations made pursuant to that Act.
17.10No Amendment. No amendment to this Agreement shall be effective unless it is made in writing and signed by the Parties hereto.
17.11Contribution Agreement Only. This Agreement is a contribution agreement only, not a contract for services or a contract of service or employment, and nothing in this Agreement, the Parties relationship or actions is intended to create, or be construed as creating, a partnership, employment or agency relationship between them. The Recipient is not in any way authorized to make a promise, agreement or contract and to incur any liability on behalf of His Majesty or to represent itself as an agent, employee or partner of His Majesty, including in any agreement with a third party, nor shall the Recipient make a promise, agreement or contract and incur any liability on behalf of His Majesty, and the Recipient shall be solely responsible for any and all payments and deductions required by the applicable laws.
17.12No Waiver. The rights and remedies of the Minister under this Agreement shall be cumulative and not exclusive of any right or remedy that he or she would otherwise have. The fact
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that the Minister refrains from exercising a remedy he or she is entitled to exercise under this Agreement will not constitute a waiver of such right and any partial exercise of a right will not prevent the Minister in any way from later exercising any other right or remedy under this Agreement or other applicable law.
17.13Consent of the Minister. Whenever this Agreement provides for the Minister to render a decision or for the Recipient to obtain the consent or agreement of the Minister, such decision shall be reasonable on the facts and circumstance and such consent or agreement will not be unreasonably withheld but the Minister may make the issuance of such consent or agreement subject to reasonable conditions.
17.14No conflict of interest. The Recipient and its Affiliated Persons, consultants and any of their respective advisors, partners, directors, officers, shareholders, employees, agents and volunteers shall not engage in any activity where such activity creates a real, apparent or potential conflict of interest in the sole opinion of the Minister, with the carrying out of the Project. For greater certainty, and without limiting the generality of the foregoing, a conflict of interest includes a situation where anyone associated with the Recipient owns or has an interest in an organization that is carrying out work related to the Project.
17.15Disclose potential conflict of interest. The Recipient shall disclose to the Minister without delay any actual or potential situation that may be reasonably interpreted as either a conflict of interest or a potential conflict of interest.
17.16Severability. Any provision of this Agreement which is prohibited by law or otherwise deemed ineffective will be ineffective only to the extent of such prohibition or ineffectiveness and will be severable without invalidating or otherwise affecting the remaining provisions of the Agreement.
17.17Signature in Counterparts. This Agreement may be signed in counterparts and such counterparts may be delivered by acceptable electronic transmission, including portable document format (PDF), each of which when executed and delivered is deemed to be an original, and when taken together, will constitute one and the same Agreement.
17.18Currency. Unless otherwise indicated, all dollar amounts referred to in this Agreement are to the currency of Canada.
17.19Tax. The Recipient acknowledges that financial funding from government programs may have tax implications for its organization and that advice should be obtained from a qualified tax professional.
18. | Contact Information & Notices |
18.1Form and Timing of Notice. Any notice or other communication under this Agreement shall be made in writing. The Minister or the Recipient may send any written notice by any pre-paid method, including regular or registered mail, courier or email. Notice will be considered as received upon delivery by the courier, upon the Party confirming receipt of the email or one (1) day after the email is sent, whichever the sooner or five (5) calendar days after being mailed.
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18.2Any notices to the Minister in fulfillment of obligations such as claims, reporting, and any other documents stipulated under this Agreement, will be addressed to:
Strategic Response Fund (SRF)
Attn: Director General
8th Floor
235 Queen Street
Ottawa, Ontario K1A 0H5
Email address: to be provided by SRF upon request from the Recipient.
Notwithstanding the foregoing, claims forms will not be sent by email unless otherwise agreed to in writing by the Minister.
18.3Any notices to the Recipient will be addressed to:
General Fusion Inc.
Attn: Mr. Greg Twinney, Chief Executive Officer
6020 Russ Baker Way
Richmond, British Columbia
V7B 1B4
[***]
18.4Change of Contact Information. Each of the Parties may change the address, which they have stipulated in this Agreement by notifying in writing the other Party of the new address, and such change shall be deemed to take effect fifteen (15) calendar days after receipt of such notice.
[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]
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IN WITNESS WHEREOF the Parties hereto have executed this Agreement through duly authorized representatives.
HIS MAJESTY THE KING IN RIGHT OF CANADA
as represented by the Minister of Industry
Per: | [***] | | March 20, 2026 |
| Name: Denis Martel | Date | |
| Title: Director General, Strategic Response Fund | | |
General Fusion Inc.
Per: | [***] | | March 26, 2026 |
| General Fusion Inc. | Date | |
| Greg Twinney, Chief Executive Officer | | |
| | | |
| I have the authority to bind the Corporation. | | |
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SCHEDULE 1– STATEMENT OF WORK (SOW)
[***]
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SCHEDULE 2 - COMMUNICATIONS OBLIGATIONS
[***]
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SCHEDULE 3 - COST PRINCIPLES
[***]
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SCHEDULE 4 - REPORTING REQUIREMENTS
[***]
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SCHEDULE 5 – REPAYMENTS TO THE MINISTER - WARRANTS
[***]
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SCHEDULE 6 – ILLUSTRATIVE WARRANT EXAMPLE
[***]
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SCHEDULE 7 – ILLUSTRATRIVE CAPITALIZATION WATERFALL VALUATION ANALYSIS
[***]
42
SCHEDULE A
WARRANT CERTIFICATE
WARRANT TO PURCHASE SHARES OF
General Fusion Inc.
(Incorporated under the laws of British Columbia)
[***]
Schedule B
WARRANT EXERCISE SUBSCRIPTION FORM
[***]
Exhibit 5.1
| ||
| ||
Fasken Martineau DuMoulin LLP | 550 Burrard Street, Suite 2900 | T +1 604 631 3131 |
Barristers and Solicitors | Vancouver, British Columbia V6C OA3 | +1 866 635 3131 |
Patent and Trade-mark Agents | Canada | F +1 604 631 3232 |
| | fasken.com |
September 8, 2026
General Fusion Group Ltd.
6020 Russ Baker Way,
Richmond, British Columbia
V7B 1B4
Dear Sirs/Mesdames:
Re: | General Fusion Group Ltd. – Registration Statement on Form F-1 |
We have acted as Canadian counsel to General Fusion Group Ltd., a company continued under the laws of the Province of British Columbia (the “Corporation”), in connection with the filing of a registration statement on Form F-1 (as may be amended from time to time, the “Registration Statement”) with the Securities and Exchange Commission (the “Commission”) under the Securities Act of 1933, as amended (the “Act”). The Corporation consummated a business combination (the “Business Combination”) by way of an arrangement (the “Arrangement”) under the Business Corporations Act (British Columbia) (the “BCBCA”) pursuant to the business combination agreement dated as of January 21, 2026 (as amended on May 12, 2026 and on June 3, 2026, the “Business Combination Agreement”), by and among the Corporation (formerly Spring Valley Acquisition Corp. III, a Cayman Islands exempted company (“Spring Valley”)), General Fusion Inc., a British Columbia limited company (“Old General Fusion”), and 1573562 B.C. Ltd., a British Columbia limited company and a wholly-owned direct subsidiary of Spring Valley (“NewCo”), which provided for, among other things and subject to the terms and conditions contained in the Business Combination Agreement and the plan of arrangement (the “Plan of Arrangement”): (i) prior to the closing of the Business Combination, Spring Valley transferred by way of continuation and deregistration from the Cayman Islands to the Province of British Columbia, Canada (the “Continuation”) in accordance with the Cayman Islands Companies Act (As Revised) and the BCBCA pursuant to which, among other things, the identifying name of the Class A ordinary shares of Spring Valley was changed to Class A common shares (the “Class A Common Shares”) and the identifying name of the Class B ordinary shares of Spring Valley was changed to Class B common shares (the “Class B Common Shares”); (ii) Spring Valley’s corporate name was changed to “General Fusion Group Ltd.”; (iii) the Class B Common Shares were converted and exchanged for Class A Common Shares in accordance with the special rights and restrictions thereto; (iv) NewCo amalgamated with and into Old General Fusion (the “Amalgamation”) to form one corporate entity, with NewCo surviving the Amalgamation as “General Fusion Inc.”; and (v) the Class A Common Shares were re-designated as common shares in the capital of the Corporation (the “Subordinate Voting Shares”).


In connection with the Business Combination, Old General Fusion issued and sold units of Old General Fusion pursuant to subscription agreements (the “PIPE Subscription Agreements”) among certain investors, Old General Fusion and Spring Valley (the “PIPE Financing”) with each unit consisting of one convertible preferred share (each an “Old GF Convertible Preferred Share”) and one warrant exercisable for one Old General Fusion Class A voting common share (an “Old GF PIPE Warrant”), prior to the completion of the Business Combination.
The Registration Statement relates to the offer and sale by certain security holders of the Corporation named in the Registration Statement (the “Selling Securityholders”) of up to an aggregate of 102,402,511 Subordinate Voting Shares (the “Resale Shares”) and up to 12,223,034 warrants to acquire Subordinate Voting Shares, which consist of up to:
(i) | 44,810,873 Subordinate Voting Shares (the “Issuable MVS Conversion Shares”) issuable upon the conversion of 10,416,663 outstanding convertible preferred shares without par value (each a “GF Multiple Voting Share”) in the capital of the Corporation, assuming a conversion price of $5.00 per Subordinate Voting Share and the conversion occurring on the fifth anniversary of the closing of the PIPE Financing based on an Accrued Value (as such term is defined in the Articles) assuming no Cash Dividends (as such term is defined in the Articles) have been paid on such GF Multiple Voting Shares, issued upon exchange of Old GF Convertible Preferred Shares pursuant to the Business Combination; |
(ii) | 140,303 Subordinate Voting Shares (the “Issued MVS Conversion Shares”) issued upon the conversion of 139,704 GF Multiple Voting Shares; |
(iii) | 10,556,367 warrants, each warrant to acquire one Subordinate Voting Share, issued in exchange for the Old GF PIPE Warrants (the “GF PIPE Warrants”) pursuant to the Business Combination, and 25,335,276 Subordinate Voting Shares issuable upon the exercise of the GF PIPE Warrants, assuming an exercise price of $5.00 per Subordinate Voting Share (the “GF PIPE Warrant Shares”); |
(iv) | 1,666,667 warrants, each warrant to acquire one Subordinate Voting Share issued to Spring Valley Acquisition III Sponsor, LLC, a Cayman Islands limited liability company, upon the conversion of certain working capital loans (the “Working Capital Warrants”) and 1,666,667 Subordinate Voting Shares issuable upon the exercise of the Working Capital Warrants (the “Working Capital Warrant Shares”); |
(v) | 9,076,980 Subordinate Voting Shares issuable upon the exercise of warrants (the “SRF Warrant Shares”), each warrant to acquire one Subordinate Voting Share (the “SRF Warrants”), issued in exchange for Old General Fusion warrants issued in connection with that certain contribution agreement entered into by Old General Fusion and the Strategic Response Fund of His Majesty the King in the Right of Canada as represented by the Minister of Industry (the “SRF Contribution Agreement”) pursuant to the Business Combination; |
(vi) | 1,607,780 Subordinate Voting Shares issuable upon the exercise of warrants (the “SAFE Warrant Shares”), each warrant to acquire one Subordinate Voting Share (the “SAFE Warrants”), issued in exchange for warrants of Old General Fusion previously issued in |

2

connection with the purchase of Simple Agreements for Future Equity by certain investors pursuant to the Business Combination;
(vii) | 1,122,904 Subordinate Voting Shares issuable upon the exercise of warrants (the “Weil Warrant Shares”), each warrant to acquire one Subordinate Voting Share (the “Wiel Warrants”), issued in exchange for warrants of Old General Fusion previously issued to Weil, Gotshal & Manges LLP; |
(viii) | 9,519,205 Subordinate Voting Shares (collectively, the “Issued Earnout Conversion Shares”) issuable upon the conversion of the 3,173,069 Class A Earnout shares, 3,173,068 Class B Earnout shares, and 3,173,068 Class C Earnout shares in the capital of the Corporation issued pursuant to the Business Combination (collectively, the “Issued Earnout Shares”) and currently outstanding, and the 2,459,745 Subordinate Voting Shares issuable upon the conversion of the 819,915 Class A Earnout shares, 819,915 Class B Earnout shares, and 819,915 Class C Earnout shares in the capital of the Corporation (the “Issuable Earnout Conversion Shares”, and together with the Issued Earnout Conversion Shares, the “Earnout Conversion Shares”) issuable pursuant to certain warrants of the Corporation (the “Exchange Earnout Warrants”), each exercisable into one Class A Earnout share, Class B Earnout share, or Class C Earnout share, as applicable, issued in exchange for certain warrants of Old General Fusion pursuant to the Business Combination; and |
(ix) | 6,662,778 Subordinate Voting Shares (the “SV Private Placement Warrant Shares”) issuable upon the exercise of warrants issued in exchange for warrants originally issued in a private placement in connection with Spring Valley’s initial public offering (the “SV Private Placement Warrants”) pursuant to the Business Combination. |
The Registration Statement also relates to the issuance of up to 109,928,827 Subordinate Voting Shares, including the Issuable MVS Conversion Shares, the GF PIPE Warrant Shares, the Working Capital Warrant Shares, the SRF Warrant Shares, the SAFE Warrant Shares, the Weil Warrant Shares, the Earnout Conversion Shares, the SV Private Placement Warrants Shares, and 7,666,619 Subordinate Voting Shares (the “SV Public Warrant Shares” and collectively, the “Primary Shares”) issuable upon the exercise of warrants issued in exchange for warrants originally issued in connection with Spring Valley’s initial public offering pursuant to the Business Combination (the “SV Public Warrants,” and together with the SV Private Placement Warrants and the Working Capital Warrants, the “Warrant Agreement Warrants”).
The Warrant Agreement Warrants were issued pursuant to a warrant agreement, dated as of September 3, 2025, between Continental Stock Transfer and Trust Company (“Continental”) and Spring Valley, as amended by the warrant agreement amendment, dated as of July 9, 2026, among Continental, Odyssey Transfer and Trust Company, and Spring Valley (collectively, the “Warrant Agreement”).

3

A. | Documents Reviewed and Reliance |
As Canadian counsel to the Corporation, we have participated in the preparation of and/or examined original executed or electronically delivered copies, which have been certified or otherwise identified to our satisfaction, of:
1. | the Registration Statement; |
2. | the Warrant Agreement, including the form of certificate representing the Warrant Agreement Warrants; |
3. | the forms of the certificates representing the GF PIPE Warrants, the SRF Warrants, the SAFE Warrants, the Weil Warrants, and the Exchange Earnout Warrants (collectively, with the form of certificate representing the Warrant Agreement Warrants, each a “Form of Warrant Certificate”); |
4. | the PIPE Subscription Agreements; |
5. | the SRF Contribution Agreement; |
6. | the Business Combination Agreement; |
7. | the Plan of Arrangement; and |
8. | that certain Amended and Restated Registration Rights Agreement by and among the Corporation and the parties thereto, as of July 10, 2026. |
(collectively, the “Transaction Documents”).
We have also made such investigations and examined originals or copies, certified or otherwise identified to our satisfaction, of such certificates of public officials and of such other certificates, documents and records as we considered necessary or relevant for purposes of the opinions expressed below, including:
1. | a certificate of continuation dated July 7, 2026 issued pursuant to the BCBCA relating to the Corporation; |
2. | a certificate of good standing dated September 8, 2026 issued pursuant to the BCBCA relating to the Corporation (the “Certificate of Good Standing”); and |
3. | a certificate signed by the Senior Vice President, Finance of the Corporation dated as of the date hereof addressed to our firm, containing certain additional corporate information of a factual nature and attaching the constating documents of the Corporation, including the certificate of continuation, certificate of change of name, notice of articles and articles of the Corporation (collectively, the “Constating Documents”), the resolutions of the directors of the Corporation authorizing and |

4

approving the issuance of the Primary Shares and the Resale Shares (the “Authorizing Resolutions”), certified copies of the central securities registers of each class of shares outstanding of Spring Valley dated July 6, 2026 (the “Spring Valley Securities Registers”) prior to the Continuation, certified copies of the registered shareholder list of each class of shares outstanding of Spring Valley dated July 9, 2026 (the “Spring Valley Securities Registers”) following the Continuation and prior to the completion of the Arrangement (the “Spring Valley Continuation Securities Registers”), certified copies of the registered shareholder list dated July 10, 2026 upon completion of the Business Combination or central securities registers of each class of shares outstanding of the Corporation (the “Corporation Securities Registers”), and the final order of the Supreme Court of British Columbia dated July 9, 2026 with respect to the Arrangement (the “Officer’s Certificate”).
As to various questions of fact material to the opinions provided herein, we have relied upon the Officer’s Certificate.
B. | Laws Addressed |
We are qualified to practice law in the Province of British Columbia and our opinion herein is restricted to the laws of the Province of British Columbia and the federal laws of Canada applicable therein (the “Applicable Laws”).
C. | Assumptions and Qualifications |
For the purposes of the opinions expressed herein, we have assumed, without independent investigation, the following:
1. | with respect to all documents examined by us, the genuineness of all signatures, the authenticity, completeness and accuracy of all documents submitted to us as originals, the conformity to originals of all documents submitted to us as certified, conformed, telecopied, PDF or photocopied copies of originals and the legal capacity of individuals signing any documents; |
2. | the completeness, accuracy and currency of the indices and filing systems maintained at the public offices where we have searched or made relevant inquiries and of other documents and certificates supplied by public officials; |
3. | that the minute books and corporate records of the Corporation made available to us are the original minute books and records of the Corporation and contain all of the articles and constating documents of the Corporation and any amendments thereto and all of the respective minutes, or copies thereof, of all proceedings of the shareholders and directors; |
4. | the Continuation of Spring Valley to become a company existing under BCBCA, being the Corporation, including the change in the identifying name of the Class A |

5

ordinary shares of Spring Valley to the Class A Common Shares and the identifying name of the Class B ordinary shares of Spring Valley to the Class B Common Shares, was duly authorized in accordance with the laws of Spring Valley’s jurisdiction of incorporation;
5. | the Spring Valley Securities Registers remain accurate and correct as of immediately prior to the completion of the Continuation; |
6. | the Spring Valley Continuation Securities Registers are accurate and correct as of July 9, 2026 following completion of the Continuation and prior to completion of the Arrangement; |
7. | the Corporation Securities Register was accurate and correct as of July 10, 2026 following completion of the Arrangement; |
8. | the conversion of the GF Multiple Voting Shares shall be in accordance with the Articles and the Conversion Price (as such term is defined in the Articles) on conversion of the GF Multiple Voting Shares will be no less than $5.00 per Subordinate Voting Share and the conversion will occur no later than the fifth anniversary of the closing of the PIPE Financing based on an Accrued Value (as such term is defined in the Articles) assuming no Cash Dividends (as such term is defined in the Articles) have been paid on such GF Multiple Voting Shares; |
9. | the exercise of the GF PIPE Warrants shall be in accordance with the certificate representing the GF PIPE Warrants and the Exercise Price (as such term is defined in such warrant certificate) on exercise of the GF PIPE Warrants will be no less than $5.00 per Subordinate Voting Share; |
10. | prior to issuance of any Issuable Earnout Conversion Shares, prior to issuance of the applicable Class A Earnout shares, Class B Earnout shares, and Class C Earnout shares in the capital of the Corporation so converted, the holder of the applicable Exchange Earnout Warrant shall have duly exercised such Exchange Earnout Warrant in accordance with the terms thereof, including payment of the applicable exercise price; |
11. | the certificates representing the Warrant Agreement Warrants, GF PIPE Warrants, the SRF Warrants, the SAFE Warrants, the Weil Warrants, and the Exchange Earnout Warrants, are, or when executed and delivered, will be, in the in the form of the applicable Form of Warrant Certificate; |
12. | the Corporation has received adequate consideration for the issuance of all GF Multiple Voting Shares, the Issued Earnout Shares, the SRF Warrants and the Weil Warrants; and |
13. | no opinion is expressed as to actual receipt by the Corporation of the consideration for the issuance of such securities in our opinion or as to the adequacy or sufficiency of any consideration received by the Corporation. |
The opinions expressed below are also subject to the following qualifications, limitations and restrictions:

6

| 1. | for the purposes of our opinion in paragraph 1, we have relied solely on the Certificate of Good Standing, without any independent verification or inquiry. |
D. | Reliance |
For the purposes of expressing the opinions set forth herein, in connection with certain factual matters pertaining to this opinion, we have relied exclusively and without independent investigation upon the Officer’s Certificate.
E. | Opinions |
Based upon and relying on the foregoing and the qualifications hereinafter expressed, we are of the opinion that:
1. | The Corporation is a company existing under the Business Corporations Act (British Columbia). |
2. | The Corporation has all necessary corporate power and capacity to execute and deliver the certificates representing the GF PIPE Warrants and the Working Capital Warrants and the execution and delivery of the certificates representing the GF PIPE Warrants and the Working Capital Warrants by the Corporation and the performance of its obligations thereunder have been duly authorized by all necessary corporate action on the part of the Corporation. |
3. | The Issued MVS Conversion Shares and the Issuable MVS Conversion Shares, if and when issued in compliance with the provisions of the Articles, will be validly issued, fully paid and non-assessable shares in the capital of the Corporation. |
4. | The GF PIPE Warrant Shares, if and when issued in compliance with the provisions of the applicable GF PIPE Warrant, including due exercise of such warrants and the receipt by the Corporation of payment therefor, will be validly issued, fully paid and non-assessable shares in the capital of the Corporation. |
5. | The Working Capital Warrant Shares, if and when issued in compliance with the provisions of the Working Capital Warrants, including due exercise of such warrants and the receipt by the Corporation of payment therefor, will be validly issued, fully paid and non-assessable shares in the capital of the Corporation. |
6. | The SRF Warrant Shares, if and when issued in compliance with the provisions of the SRF Warrants, including due exercise of such warrants, will be validly issued, fully paid and non-assessable shares in the capital of the Corporation. |
7. | The SAFE Warrant Shares, if and when issued in compliance with the provisions of the SAFE Warrant Certificates, including due exercise of such warrants and the receipt by the Corporation of payment therefor, will be validly issued, fully paid and non-assessable shares in the capital of the Corporation. |

7

8. | The Weil Warrant Shares, if and when issued in compliance with the provisions of the Weil Warrants, including due exercise of such warrants, will be validly issued, fully paid and non-assessable shares in the capital of the Corporation. |
9. | The Earnout Conversion Shares, if and when issued in compliance with the Articles, will be validly issued, fully paid and non-assessable shares in the capital of the Corporation. |
10. | The SV Private Placement Warrant Shares, if and when issued in compliance with the provisions of the SV Private Placement Warrants, including due exercise of such warrants and the receipt by the Corporation of payment therefor, will be validly issued, fully paid and non-assessable shares in the capital of the Corporation. |
11. | The SV Public Warrant Shares, if and when issued in compliance with the provisions of the SV Public Warrants, including due exercise of such warrants and the receipt by the Corporation of payment therefor, will be validly issued, fully paid and non-assessable shares in the capital of the Corporation. |
F. | Qualifications |
We hereby consent to the reference to us under the headings “Legal Matters” in the Registration Statement and to the filing of this opinion as an exhibit to the Registration Statement. In giving this consent, we do not thereby admit that we are included in the category of persons whose consent is required under Section 7 or Section 11 of the Act or the rules and regulations of the Commission promulgated thereunder.
The opinions are given as at the date hereof and we disclaim any obligation or undertaking to advise any person of any change in law or fact that may come to our attention after the date hereof. Our opinions do not take into account any proposed rules, policies or legislative changes that may come into force following the date hereof.
Yours truly,
/s/ Fasken Martineau DuMoulin LLP

8
Exhibit 5.2
| |
| |
| |||
| | Faegre Drinker Biddle & Reath LLP | |
September 8, 2026 | |
General Fusion Group Ltd.
6020 Russ Baker Way,
Richmond, British Columbia
V7B 1B4
Ladies and Gentlemen:
We have acted as United States counsel to General Fusion Group Ltd., a company continued under the laws of the Province of British Columbia (the “Company”), in connection with (i) the Company’s business combination (the “Business Combination”) by way of an arrangement under the Business Corporations Act (British Columbia) pursuant to the business combination agreement dated as of January 21, 2026 (as amended on May 12, 2026 and on June 3, 2026, the “Business Combination Agreement”), by and among the Company (formerly Spring Valley Acquisition Corp. III, a Cayman Islands exempted company (“Spring Valley”)), General Fusion Inc., a British Columbia limited company (“Old General Fusion”), and 1573562 B.C. Ltd., a British Columbia limited company and a wholly-owned direct subsidiary of Spring Valley, and (ii) the filing of a registration statement on Form F-1 (as may be amended from time to time, the “Registration Statement”) with the Securities and Exchange Commission (the “Commission”) under the Securities Act of 1933, as amended (the “Act”), pursuant to which the Company is registering for resale, among other securities, (x) 10,556,367 warrants (the “PIPE Warrants”), each warrant to acquire one common share of the Company (each, a “Subordinate Voting Share”), issued by the Company in the Business Combination in exchange for the warrants exercisable for Class A voting common shares of Old General Fusion, which Old General Fusion issued pursuant to subscription agreements (the “PIPE Subscription Agreements”) among certain investors, Old General Fusion and Spring Valley, and (y) 1,666,667 warrants, each warrant to acquire one Subordinate Voting Share, issued to Spring Valley Acquisition III Sponsor, LLC, a Cayman Islands limited liability company (“Sponsor”), upon the conversion of certain working capital loans (the “Working Capital Warrants”) pursuant to a warrant agreement, dated as of September 3, 2025, between Continental Stock Transfer and Trust Company (“Continental”) and Spring Valley, as amended, among Continental, Odyssey Transfer and Trust Company, and Spring Valley (collectively, the “Warrant Agreement”) and upon a notice of conversion, dated July 10, 2026, delivered by the Sponsor to Spring Valley (the “Conversion Notice”). As such counsel, we are furnishing an opinion in accordance with the requirements of Item 601(b)(5) of Regulation S-K under the Act. In connection with such opinion, you have asked us to opine with respect to certain matters under New York and Delaware law.
We have examined the Business Combination Agreement, the Registration Statement, the PIPE Subscription Agreements, the PIPE Warrants, the Working Capital Warrants, the Warrant
General Fusion Group Ltd.
September 8, 2026
Page 2
Agreement and the Conversion Notice, and such other documents, records and instruments as we have deemed necessary or appropriate for the purposes of the opinions set forth herein.
Based upon and subject to the foregoing and the qualifications set forth in Annex I attached hereto, we are of the opinion that the PIPE Warrants and the Working Capital Warrants are valid and binding obligations of the Company, enforceable against the Company in accordance with their terms, subject to applicable bankruptcy, insolvency, voidable transactions, fraudulent conveyance, fraudulent transfer, reorganization, moratorium, assignment for the benefit of creditors and similar laws relating to or affecting creditors’ rights generally and equitable principles of general applicability (regardless of whether considered in a proceeding in equity or at law).
We hereby consent to the filing of this opinion as Exhibit 5.2 to the Registration Statement and to the reference to us under the heading “Legal Matters” in the Registration Statement. In giving such consent, we do not imply or admit that we are “experts” within the meaning of the Act or other rules and regulations of the Commission issued thereunder with respect to any part of the Registration Statement, including this exhibit.
| Very truly yours, |
| |
| /s/ Faegre Drinker Biddle & Reath LLP |
| |
| FAEGRE DRINKER BIDDLE & REATH LLP |
Annex I
In rendering the accompanying opinion letter, we wish to advise you of the following additional qualifications to which such opinion letter is subject:
(a)We have relied, as to certain relevant facts, upon representations made by the Company in the Business Combination Agreement, the PIPE Subscription Agreements, the PIPE Warrants, the Working Capital Warrants, the Warrant Agreement and the Conversion Notice (collectively, the “Transaction Documents”), the assumptions set forth herein, and certificates of, and information provided by, officers and employees of the Company reasonably believed by us to be appropriate sources of information, as to the accuracy of such factual matters, in each case without independent verification thereof or other investigation.
(b)Our opinion letter is limited to the laws of the State of Delaware with respect to the PIPE Warrants and the laws of the State of New York with respect to the Working Capital Warrants (the “Covered Laws”), and we express no opinion as to the effect on the matters covered by our opinions of any other law.
(c)We have relied, without investigation, upon the following assumptions: (i) natural persons who are involved on behalf of the Company have sufficient legal capacity to enter into and perform, on behalf of the Company, the transaction in question and to carry out their role in the transaction; (ii) each Transaction Document has been duly authorized, executed and delivered by each party thereto; (iii) each party having rights under any of the Transaction Documents has satisfied those legal requirements that are applicable to it to the extent necessary to make the Transaction Documents enforceable against it and has complied with all legal requirements pertaining to its status as such status relates to its rights to enforce the Transaction Documents against it and the other parties; (iv) each document submitted to us for review is accurate and complete, each such document that is an original is authentic, each such document that is a copy conforms to an authentic original, and all signatures on each such document, including electronic signatures, are genuine; (v) all statutes, judicial and administrative decisions, and rules and regulations of governmental agencies, constituting the Covered Laws, are publicly available to lawyers practicing in the jurisdictions the laws of which are addressed by this opinion letter (the “Opining Jurisdictions”); (vi) all relevant statutes, rules, regulations or agency actions are constitutional and valid unless a reported decision in the Opining Jurisdictions has specifically addressed but not resolved, or has established, its unconstitutionality or invalidity; and (vii) there are no agreements or understandings among the parties, written or oral, and there is no usage of trade or course of prior dealing among the parties that would, in either case, define, supplement or qualify the terms of any of the Transaction Documents.
(d)We have further assumed, without investigation, that (i) the Company has been duly organized and is validly existing and in good standing under the laws of its jurisdiction of incorporation; (ii) the Company has the power and authority under its governing documents and the laws of its jurisdiction of incorporation to execute and deliver the Transaction Documents, to perform its obligations thereunder and to consummate the transactions contemplated thereby; (iii) the Transaction Documents have been duly
Annex I-1
authorized, executed and delivered by the Company; and (iv) the Company has obtained all governmental and third party authorizations, consents, approvals and orders and has made all filings and registrations required to enable it to execute, deliver and perform its obligations under, and consummate the transactions contemplated by, the Transaction Documents (which authorizations, consents, approvals and orders have become final and remain in full force and effect), and such execution, delivery, performance and consummation does not and will not violate or conflict with any law, rule, regulation, order, decree, judgment, instrument or agreement binding upon the Company or its properties.
(e)We express no opinion as to the enforceability or effect in any Transaction Document of (i) any agreement to submit to the jurisdiction of any particular court or other governmental authority (either as to personal jurisdiction or subject matter jurisdiction), any provision restricting access to courts (including without limitation agreements to arbitrate disputes), any waivers of the right to jury trial, any waivers of service of process requirements that would otherwise be applicable, any provisions relating to evidentiary standards, any agreement that a judgment rendered by a court in one jurisdiction may be enforced in another jurisdiction, or any provision otherwise affecting the jurisdiction or venue of courts; (ii) any provision waiving or otherwise modifying legal, statutory or equitable defenses or other procedural, judicial or substantive rights; and (iii) any provision that authorizes one party to act as attorney-in-fact for another party.
(f)The opinions herein expressed are limited to the specific issues addressed and to facts and laws existing on the date hereof. In rendering these opinions, we do not undertake to advise you with respect to any other matter or of any change in such laws, or in the interpretation thereof, or of any change in such facts or in our knowledge of relevant facts which may occur or become known to us after the date hereof.
(g)Without limiting any other qualifications set forth herein, the opinions expressed in the accompanying opinion letter are subject to the effect of generally applicable laws that (i) provide for the enforcement of oral waivers or modifications where a material change of position in reliance thereon has occurred or provide that a course of performance may operate as a waiver; (ii) limit the availability of a remedy under certain circumstances where another remedy has been elected; (iii) limit the enforceability of provisions releasing, exculpating or exempting a party from, or requiring indemnification of or contribution to a party for, liability for its own action or inaction, to the extent the action or inaction involves negligence, recklessness, willful misconduct or unlawful conduct or to the extent such provisions are contrary to public policy; (iv) limit the enforcement of provisions of a contract that purport to require the waiver of the obligation of good faith, fair dealing, diligence and reasonableness; (v) may, where less than all of a contract may be unenforceable, limit the enforceability of the balance of the contract to circumstances in which the unenforceable portion is not an essential part of the agreed exchange; (vi) govern and afford judicial discretion regarding determination of damages and entitlement to attorneys’ fees and other costs; (vii) may permit a party who has materially failed to render or offer performance required by a contract to cure that failure unless either permitting a cure would unreasonably hinder the aggrieved party from making substitute arrangements for performance or it is important under the circumstances to the aggrieved party that performance occur by the date stated in the contract; (viii) may limit
Annex I-2
the enforceability of provisions imposing premiums or liquidated damages to the extent such provisions constitute, or are deemed to constitute, a penalty or forfeiture and provisions imposing increased interest rates upon default; (ix) may require mitigation of damages; (x) provide a time limitation after which rights may not be enforced (i.e., statutes of limitation); and (xi) may limit, delay or prohibit the making of payments outside the United States.
(h)The opinions expressed herein do not address any of the following legal issues: (i) state securities and Blue Sky laws and regulations; (ii) compliance with fiduciary duty and conflict-of-interest requirements; and (iii) the statutes and ordinances, administrative decisions and the rules and regulations of counties, towns, municipalities and special political subdivisions (whether created or enabled through legislative action at the federal, state or regional level) and judicial decisions to the extent that they deal with the foregoing.
Annex I-3
Exhibit 23.1
Consent of Independent Registered Public Accounting Firm
We hereby consent to the use in the Prospectus constituting a part of this Registration Statement on Form F-1 of our report dated March 6, 2026, relating to the financial statements of Spring Valley Acquisition Corp. III as of December 31, 2025, and for the period from March 12, 2025 (inception) through December 31, 2025 (which includes an explanatory paragraph relating to Spring Valley Acquisition Corp. III’s ability to continue as a going concern), which is contained in that Prospectus. We also consent to the reference to us under the caption “Experts” in the Prospectus.
/s/ WithumSmith+Brown, PC
New York, New York
September 8, 2026
Exhibit 23.2
Consent of Independent Registered Public Accounting Firm
We hereby consent to the use in this Registration Statement on Form F-1 of General Fusion Group Ltd. of our report dated April 22, 2026, relating to the financial statements of General Fusion Inc., which appears in this Registration Statement. We also consent to the reference to us under the heading “Experts” in such Registration Statement.
/s/ PricewaterhouseCoopers LLP
Chartered Professional Accountants
Vancouver, Canada
September 8, 2026
|
Calculation of Filing Fee Tables |
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|
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|
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|||
| Table 1: Newly Registered and Carry Forward Securities |
|---|
|
Security Type |
Security Class Title |
Fee Calculation or Carry Forward Rule |
Amount Registered |
Proposed Maximum Offering Price Per Unit |
Maximum Aggregate Offering Price |
Fee Rate |
Amount of Registration Fee |
Carry Forward Form Type |
Carry Forward File Number |
Carry Forward Initial Effective Date |
Filing Fee Previously Paid in Connection with Unsold Securities to be Carried Forward |
||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Newly Registered Securities | |||||||||||||
|
|
1 |
|
|
|
|
$
|
$
|
|
$
|
||||
|
|
2 |
|
|
|
|
$
|
$
|
|
$
|
||||
|
|
3 |
|
|
|
|
$
|
$
|
|
$
|
||||
|
|
4 |
|
|
|
|
$
|
$
|
|
$
|
||||
|
|
5 |
|
|
|
|
$
|
|
$
|
|||||
| Fees Previously Paid | |||||||||||||
| Carry Forward Securities | |||||||||||||
| Carry Forward Securities | |||||||||||||
|
Total Offering Amounts: |
$
|
$
|
|||||||||||
|
Total Fees Previously Paid: |
$
|
||||||||||||
|
Total Fee Offsets: |
$
|
||||||||||||
|
Net Fee Due: |
$
|
||||||||||||
|
Offering Note |
|
1 |
|
||||||
|
|
|||||||
|
2 |
|
||||||
|
|
|||||||
|
3 |
|
||||||
|
|
|||||||
|
4 |
|
||||||
|
|
|||||||
|
5 |
|
||||||
|
|
|||||||
| Table 2: Fee Offset Claims and Sources |
|---|
| Registrant or Filer Name | Form or Filing Type | File Number | Initial Filing Date | Filing Date | Fee Offset Claimed | Security Type Associated with Fee Offset Claimed | Security Title Associated with Fee Offset Claimed | Unsold Securities Associated with Fee Offset Claimed | Unsold Aggregate Offering Amount Associated with Fee Offset Claimed | Fee Paid with Fee Offset Source | |||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Rules 457(b) and 0-11(a)(2) | |||||||||||||
| Fee Offset Claims | |||||||||||||
| Fee Offset Sources | |||||||||||||
| Rule 457(p) | |||||||||||||
| Fee Offset Claims | |||||||||||||
| Fee Offset Sources | |||||||||||||
| Table 3: Combined Prospectuses |
|---|
|
Security Type |
Security Class Title |
Amount of Securities Previously Registered |
Maximum Aggregate Offering Price of Securities Previously Registered |
Form Type |
File Number |
Initial Effective Date |
|
|---|---|---|---|---|---|---|---|