BLACK BIRD BIOTECH, INC. Item 1.01. Entry into a Material Definitive Agreement.
Securities Exchange Agreements
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Pursuant to the Exchange Agreements, the Company is to issue a total of 42,000 shares of its Series A Preferred Stock, in exchange for a total of 123,972,996 shares of its Common Stock, as follows:
Number of Shares of Number of Shares of
Exchange Agreement Common Stock Exchanged Series A Preferred Stock Issued
Deneault Agreement 49,746,253 shares 14,250 shares
Newlan Agreement 49,317,406 shares 14,250 shares
Sluss Agreement 1,615,002 shares 1,000 shares
EFT Holdings Agreement 18,221,906 shares 9,778 shares
EF2T Agreement 2,240,768 shares 1,202 shares
Astonia Agreement 2,831,661 shares 1,520 shares
The Deneault Agreement and the Newlan Agreement are expected to be consummated
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The foregoing description of the Exchange Agreements does not purport to be complete and is qualified in its entirety by the full text of the Exchange Agreements, copies of which are filed as Exhibits 10.1, 10.2, 10.3, 10.4, 10.5 and 10.6., respectively, to this Current Report on Form 8-K and incorporated by reference herein.
Cancellation of Common Stock
The Board of Directors has determined that all 123,972,996 shares that are the subject of the Exchange Agreements will, upon the consummation of the Exchange Agreements, be cancelled and returned to the status of authorized and unissued.
Item 5.03 Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year.
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Designation, Amount and Par Value. The series of Preferred Stock shall be
designated as Series A Preferred Stock (the "Series A Preferred Stock") and the
number of shares so designated shall be Forty-Two Thousand (42,000). Each share
of the Series A Preferred Stock shall have a par value of
Fractional Shares. The Series A Preferred Stock may be issued in fractional shares.
Voting Rights. The holders of the Series A Preferred Stock shall, as a class, have rights in all matters requiring shareholder approval to a number of votes equal to two (2) times the sum of:
(a) The total number of shares of common stock which are issued and
outstanding at the time of any election or vote by the shareholders;
plus
(b) The number of votes allocated to shares of Preferred Stock issued and
outstanding of any other class that shall have voting rights.
Dividends. The Series A Preferred Stock shall be treated pari passu with the Company's common stock, except that the dividend on each share of Series A Preferred Stock shall be equal to the amount of the dividend declared and paid on each share of the Company's common stock multiplied by the Conversion Rate, as that term is defined herein.
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Liquidation. Upon any liquidation, dissolution or winding up of the Company, whether voluntary or involuntary, payments to the holders of Series A Preferred Stock shall be treated pari passu with the Company's common stock, except that the payment on each share of Series A Preferred Stock shall be equal to the amount of the payment on each share of the Company's common stock multiplied by the Conversion Rate, as that term is defined herein.
Conversion and Adjustments.
Conversion Rate. The Series A Preferred Stock shall be convertible into shares of the Company's common stock, as follows:
Each 1,000 shares of Series A Preferred Stock shall be convertible at any time into a number of shares of the
Company's common stock that equals one percent (1.00%) of the number of issued and outstanding shares
of the Company's common stock outstanding on the date of conversion (the "Conversion Rate").
No Partial Conversion. A holder of shares of Series A Preferred Stock shall be required to convert all of such holder's shares of Series A Preferred Stock, should any such holder exercise his, her or its rights of conversion.
Adjustment for Merger and Reorganization, etc. If there shall occur any reorganization, recapitalization, reclassification, consolidation or merger (a "Reorganization Event") involving the Company in which the Company's common stock (but not the Series A Preferred Stock) is converted into or exchanged for securities, cash or other property, then each share of Series A Preferred Stock shall be deemed to have been converted into shares of the Company's common stock at the Conversion Rate.
Protection Provisions. So long as any shares of Series A Preferred Stock are outstanding, the Company shall not, without first obtaining the unanimous written consent of the holders of Series A Preferred Stock, alter or change the rights, preferences or privileges of the Series A Preferred Stock so as to affect adversely the holders of Series A Preferred Stock.
Waiver. Any of the rights, powers or preferences of the holders of the Series A Preferred Stock may be waived by the affirmative consent or vote of the holders of at least a majority of the shares of Series A Preferred Stock then outstanding.
No Other Rights or Privileges. Except as specifically set forth herein, the holder(s) of the shares of Series A Preferred Stock shall have no other rights, privileges or preferences with respect to the Series A Preferred Stock.
The foregoing description of the Certificate of Designation is qualified in its entirety by the full text of the Certificate of Designation, which is filed as Exhibit 3.1 to, and incorporated by reference in, this report.
Item 7.01 Regulation FD Disclosure.
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The foregoing description of the Company's press release is qualified in its entirety by the full text thereof, which is filed as Exhibit 99.1 to, and incorporated by reference in, this report.
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Item 9.01 Financial Statements and Exhibits.
Incorporated
by Reference
Exhibit No.: Description of Exhibit to:
3.1 Certificate of Designation filed August 11, 2022 Filed
herewith.
10.1 Securities Exchange Agreement between the Company Filed
and Fabian G. Deneault herewith.
10.2 Securities Exchange Agreement between the Company Filed
and Newlan & Newlan, Ltd. herewith.
10.3 Securities Exchange Agreement between the Company Filed
and William E. Sluss herewith.
10.4 Securities Exchange Agreement between the Company Filed
and EFT Holdings, Inc. herewith.
10.5 Securities Exchange Agreement between the Company Filed
and EF2T, Inc. herewith.
10.6 Securities Exchange Agreement between the Company Filed
and Astonia LLC herewith.
99.1 Press Release dated August 15, 2022 Filed
herewith.
104 Cover Page Interactive Data File (embedded within the
Inline XBRL Document).
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