Item 3.02 Unregistered Sales of
On
The securities mentioned above were issued, or will be issued, in reliance on exemptions from registration under Section 4(2) of the Securities Act of 1933, as amended (the "Act"), and Rule 506 of Regulation D promulgated under the Act. This transaction qualified for exemption from registration because among other things, the transaction did not involve a public offering, the investor was an accredited investor and/or qualified institutional buyer, the investor had access to information about our company and its investment, the investor took the securities for investment and not resale, and we took appropriate measures to restrict the transfer of the securities.
Item 3.03 Material Modification to Rights of Security Holders.
The information set forth in Item 1.01 hereof is incorporated by reference into this Item 3.03.
Item 5.03 Amendments to Articles of Incorporation or Bylaws; Change in Fiscal
Year.
Our Articles of Incorporation, as amended, authorize us to issue up to
100,000,000 million shares of preferred stock with the consent of our Board of
Directors and without any further consent from our holders of capital stock. On
· our Board of Directors authorized the creation of up to 1,000,000 shares of Series C Convertible Preferred Stock (the "Series C Preferred Shares") · we filed a Certificate of Designations with the Secretary ofNevada creating such Series C Preferred Shares
The foregoing is only a summary of the Certificate of Designations, which is filed as an exhibit hereto, so that you may more fully understand the terms the Series C Preferred Shares.
Liquidation. The Series C Preferred Shares have a liquidation preference that is
junior to our Series A convertible preferred stock, Series B preferred stock and
our common stock. The holders of the Series A Preferred Shares shall be entitled
to receive a payment in an amount that is equal to
Dividends. The holders of the Series C Preferred Shares shall be entitled to
receive, when, if and as declared by our board of directors, out of funds
legally available therefor, any dividends or other distributions that we declare
on the common stock,
Voting. The Series C Preferred Shares shall vote together with the Common Stock, and each Series C Preferred Share shall have two hundred (200) votes for each vote held by a share of Common Stock.
Forced conversion. The Series C Preferred Shares shall convert into shares of Common Stock on the earlier of:
· the five-year anniversary of the filing of this Certificate of Designations;
· the date on which any of the Company's securities is listed on a National
Securities Exchange; and
· a date agreed upon by the majority of the Series C Preferred Share voting
together as a class (including by written consent).
The number of shares of Common Stock to be issued upon conversion shall equal
the aggregate amount of the Liquidation Value being converted divided by the
higher of (a)
Item 9.01 Financial Statements and Exhibits.
Exhibits.
3.1 Certificate of Designations for Series C Convertible Preferred Stock
filed onNovember 16, 2022 104 Cover Page Interactive Data File (embedded within the Inline XBRL
document)
© Edgar Online, source