Item 1.01
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Entry into a Material Definitive Agreement
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On August 29, 2018 (the “Closing Date”), XSport Global, Inc. (the “Company”)
entered into an
Equity Purchase Agreement
(the “
Equity
Purchase Agreement
”) with Triton Funds, LP, a Delaware limited partnership (the “
Investor
”), whereby the Company shall have the right to require the Investor to purchase up to $1,000,000 (the “
Commitment
Amount
”) of shares (“
Capital Call Shares
”) the Company’s common stock, par value $0.001 per share (“Common Stock”) during the commitment period (the “
Commitment Period
” commencing on August 28, 2018, and terminating on the earlier of (i) December 31, 2018, (ii) termination of the Equity Purchase Agreement by the Company upon a material breach by the Investor, or (iii) the
date that the Investor has purchased Capital Shares equal to the Commitment Amount.
Pursuant to the Equity Purchase Agreement, the closing for Capital Call Shares shall occur on the date that is six business days following the date that the Investor
receives Capital Call Shares from the Company. The purchase price for the shares to be paid by the Investor at each closing shall be 70% of the volume-weighted average price of the Company’s common stock during the 5 trading days prior to a closing
date.
The obligation of the Investor to purchase Capital Call Shares is subject to several conditions, including, among other thing, (i) that the Company has filed a
registration statement with the United States Securities and Exchange Commission registering the Capital Call Shares, and (ii) that the purchase of Capital Call Shares shall not cause the Investor to own more than 4.99% of the outstanding shares of
the Company’s common stock.
In connection with the Equity Purchase Agreement, on August 29, 2018, the Company also entered into a
Registration Rights Agreement
with the Investor (the “
Registration Rights Agreement
”), requiring the Company to register, the Capital Call Shares
on a registration statement to be filed with the Securities and Exchange Commission within 30 calendar days of the Closing Date.
Additionally, on August 29, 2018, the Company approved a donation of 400,000 shares of the Company’s common stock to Triton Funds LLC.
The foregoing descriptions of the Purchase Agreement and Registration Rights Agreement are qualified in their entirety by reference to such Purchase Agreement and
Registration Rights Agreement, which are filed hereto as Exhibits 10.1 and 10.2, respectively, and are incorporated herein by reference.