Zapata raises $2.65M via secured notes; converts $10.1M payables to equity

Zapata Quantum, Inc.

• Secured convertible notes raise $2.65M (up to $3M), bearing 10% interest, maturing in 1 year, convertible at $0.04/share into 66.25M shares.
• Warrants to purchase 33.125M shares at $0.04/exercise price, 5-year term; cashless exercise allowed if registration ineffective.
• Used $1.343M of proceeds to repay D-Wave Quantum Inc. note with 15% interest and original $1M principal.
• Converted $10.1M of accounts payable into 27.33M shares, part of restructuring targeting up to $17M liabilities for up to 46M shares.
• Issued 34M shares to existing lender in exchange for waiver of defaults on its $1M note; intercreditor agreement governs priority.