Item 1.01 Entry into a Material Definitive Agreement.
On
In connection with the foregoing, the Company relied upon the exemption from registration provided by Section 4(a)(2) of the Securities Act of 1933, as amended, for transactions not involving a public offering.
The foregoing description of the Purchase Agreement is only a summary and is qualified in its entirety by reference to the full text of the Purchase Agreement attached as Exhibit 10.1 hereto.
Certificate of Designation
Pursuant to the Purchase Agreement, on
Under the Series C Certificate of Designation, holders of the Series C Preferred
will be entitled to receive quarterly dividends at the annual rate of 8% of the
Stated Value. Such dividends may be paid in cash or in shares of Company common
stock in the Company's discretion. In the event of any liquidation, dissolution
or winding up of the Company, the holders of record of shares of Series C
Preferred will be entitled to receive, in preference to any distribution to the
holders of the Company's other equity securities (including the Company's common
stock), a liquidation preference equal to
Each holder of Series C Preferred shall have the right to convert the Stated
Value of such shares, as well as accrued but unpaid declared dividends thereon
(collectively the "Conversion Amount") into shares of the Company's common
stock. The number of shares of common stock issuable upon conversion of the
Conversion Amount shall equal the Conversion Amount divided by the conversion
price of
Holders of Series C Preferred shall vote together with the holders of the Company's common stock, Series A Convertible Preferred Stock and Series B Convertible Redeemable Preferred Stock on an as-if-converted basis, whereby each share of Series C Preferred will be entitled to ten (10) votes, subject to adjustment. In addition, so long as there are more than 50,000 shares of the Series C Preferred outstanding, the Company will be prohibited from taking certain actions without the consent of the holders of at least 80% of the outstanding shares of Series C Preferred. In addition, the Company shall not, without the affirmative vote of the holders of a majority of the then-outstanding shares of the Series C Preferred, amend its Article of Incorporation, as amended, the Series C Certificate of Designation or the by-laws of the Company in any manner to decrease the number of authorized shares of common stock or in any manner that would otherwise adversely affect the rights, preferences or privileges of the holders of the Series C Preferred, except for an amendment to increase the number of authorized shares of common stock.
This description of the Series C Certificate of Designation is only a summary and is qualified in its entirety by reference to the full text of the form of the Series C Certificate of Designation attached as Exhibit 3.1 hereto
Item 3.02 Unregistered Sales of
The information set forth in Item 1.01 is incorporated by reference herein.
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Item 5.03 Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year.
The information set forth in Item 1.01 is incorporated by reference herein.
Item 9.01 Financial Statements And Exhibits.
(d) Exhibits
The exhibits listed below are furnished as Exhibits to this Current Report on Form 8-K.
Exhibit No. Description 3.1 Certificate of Designation of Series C Convertible Preferred Stock 10.1 Securities Purchase Agreement
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