Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

As previously reported by Innovative Payment Solutions, Inc. (the "Company"), the Company entered into separate Securities Purchase Agreements, each dated February 16, 2021, with each of Cavalry Fund I LP ("Cavalry") and Mercer Street Global Opportunity Fund, LLC ("Mercer"), pursuant to which the Company received $500,500 and $500,500 from Cavalry and Mercer, respectively, in exchange for the issuance of: (i) Original Issue Discount 12.5% Convertible Notes (the "Notes" and each a "Note") in the principal amount of $572,000 to each of Cavalry and Mercer; and (ii) five-year warrants (the "Original Warrants") issued to each of Cavalry and Mercer to purchase 2,486,957 shares of the Company's common stock at an exercise price of $0.24 per share.

Also as previously reported, on February 3, 2022, the Company extended its indebtedness to each of Cavalry and Mercer from February 16, 2022 to August 16, 2022 in consideration of increasing the principal amount outstanding and due to Cavalry and Mercer under their respective Notes by ten percent (10%).

On August 30, 2022, the Company again extended its indebtedness to each of Cavalry and Mercer from August 16, 2022 to November 16, 2022 in consideration of (i) increasing the principal amount outstanding and due to Cavalry and Mercer under their respective Notes by twenty percent (20%) and (ii) issuing to each of Cavalry and Mercer a new five-year warrant (each, an "Extension Warrant") to purchase an additional 3,000,000 shares of Company common stock at an exercise price of $0.15 per share. The Extension Warrant contains the same terms and provisions in all material respects as the Original Warrants, except for difference in exercise price.

The aggregate principal amount of each of the Cavalry Note and the Mercer Note after such extension is $1,091,754.13.

The agreement of extension between the Company and each of Cavalry and Mercer are filed as Exhibits 4.1 and 4.2 hereto, respectively. The form of Extension Warrant is filed as Exhibit 4.3 hereto. The foregoing description of the terms and provisions of the agreements of extension and the Extension Warrant is a summary only and does not purport to be complete and, is qualified in its entirety by reference to the full text of such documents, which text is incorporated herein by reference.

Item 9.01. Financial Statements and Exhibits





Exhibit No.   Exhibits
    4.1         Extension Letter Agreement with Cavalry Fund I LP, dated August 30,
              2022.
    4.2         Extension Letter Agreement with Mercer Street Global Opportunity
              Fund, LLC, dated August 30, 2022.
    4.3         Form of Extension Warrant, dated August 30, 2022
    104       Cover Page Interactive Data File (embedded within the Inline XBRL
              document)




                                       1

© Edgar Online, source Glimpses