Web3 platform Humbl receives funding commitment

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Web3 platform Humbl has announced that it has entered into an Equity Financing Agreement with Pacific Lion, pursuant to which Pacific Lion agreed to purchase up to $20m (£16m/€18m) of Humbl common stock. 

Humbl offers product lines including the Humbl Wallet, Humbl Search Engine, Humbl Social, Humbl Tickets, Humbl Marketplace and Humbl Authentics.

Pacific Lion, which helps to fund start-ups without venture capital, has also agreed to fund Humbl up to $800,000 under a Convertible Promissory Note to bridge Humbl through to the effectiveness of the registration of the shares to be sold under the Equity Financing Agreement.

Humbl has also raised $220,000 through the sale of common stock and warrants to a group of private investors.

In accordance with the Equity Financing Agreement, Pacific Lion has agreed to purchase $20m of common stock following the receipt of put notices from Humbl and subject to certain conditions. In line with the Registration Rights Agreement entered into in connection with the Equity Financing Agreement, Humbl agreed to file a registration statement to register the common stock issuable under the Equity Financing Agreement.

Should Humbl elect to cause Pacific Lion to purchase shares, the shares will be purchased at a 15% discount to the lowest closing trade price of Humbl’s common stock in the prior 10 trading days.

The deal with Pacific Lion will replace the Equity Financing Agreement with GHS Investments, which has now been terminated. Pacific Lion has the right to fund up to $800,000 and the Convertible Promissory Note bears interest at 6% and is due on May 10, 2024. Following an uplisting to a senior stock exchange, the note will automatically convert at 80% of the uplisting offering price.

Humbl also issued a Warrant to Purchase Shares of Common Stock to Pacific Lion, and the warrant is exercisable for 500,000 shares for a period of five years at $0.10 per share. If an uplisting to a senior stock exchange does not occur within nine months of the issuance date, the warrant will be cancelled.

These investments are part of a broader restructuring plan to recapitalise Humbl, consolidate and retire existing debt and reduce dilution.

Brian Foote, chief executive of Humbl, said: “Humbl is executing on its core product lines in both its consumer and commercial divisions, and we are ready to drive forward to scaling our revenues through expanded sales and technology bandwidth. The capitalisation of the company is critical, along with a comprehensive restructuring of debt and share classes, as well as reducing dilution in an effort to drive value for shareholders and prepare the company for uplisting to a major exchange.”

Jacob Fernane, chief executive of Pacific Lion, added: “We believe that Humbl has developed an early-mover advantage in providing Web 3 digital wallets, products and services to consumer and government clients. We believe our access to strategic funding, share structure cleanup, technology and operations augmentation, and more, will allow Humbl to scale to the levels needed for a major exchange uplist and to rejuvenate its powerful retail shareholder base.”

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