On December 13, 2023, Veritone, Inc. closed the transaction. The company has received $77.5 million in the transaction. The accrues interest at a rate of term SOFR plus 8.50% per annum, with a 3.00% floor for term SOFR, payable quarterly.

A default interest rate of an additional 3.00% per annum applies on all outstanding obligations after the occurrence and during the continuance of an event of default. The company issued warrants to the lenders to purchase up to 3,008,540 shares of the company?s common stock, par value $0.001 per share. The warrants are exercisable until December 12, 2028, at a price per share of $2.576.

The securities will mature scheduled maturity date of December 13, 2027, and requires quarterly amortization payments of 2.50% of the principal amount, commencing in June 2024, with the outstanding balance of the term loan payable on the scheduled maturity date.