RE:Inception debtholder stamp of confidence "Holders of more than 90% of the issued and outstanding Inception Shares have executed irrevocable acceptances and have agreed to tender their Inception Shares. Assuming 100% of Inception Shares are tendered, the Company will issue 23,734,384 common shares of Spartan to the shareholders of Inception at a deemed issuance price of approximately $3.83 per common share, calculated using the volume weighted average trading price of Spartan’s common shares for the 20 trading days immediately preceding February 16, 2021.
In addition, Spartan will issue a $50.0 million unsecured non-interest bearing convertible promissory note (the "Convertible Note") to a major shareholder and debtholder of Inception (the "Inception Shareholder"). The Convertible Note will mature five years from the closing of the Inception Acquisition, and will be convertible in whole or in part beginning on the day that is two years following the closing of the Inception Acquisition, at the Company's election, for such number of common shares calculated based on the greater of: (i) the volume weighted average trading price of the common shares for the 10 trading days immediately preceding the delivery by the Company of a notice of conversion to the Inception Shareholder; and (ii) $7.67, being two times the deemed issuance price of the common shares under the Inception Acquisition. The maximum number of Spartan common shares issuable on conversion of the Convertible Note is 6,518,905 common shares, based on the principal amount of $50.0 million divided by the minimum conversion price of $7.67 per common share."