Posted On: 11/07/2015 4:44:59 PM
Post# of 30066
I think it is more of a make or break outcome.
Pursuant to that certain Securities Purchase Agreement dated September 30, 2015 in connection with the sale of the Company’s 12% Series H Preferred Stock and n connection with the issuance of the Company’s 12% Senior Secured Convertible Promissory Notes (the “Financing Transactions”), the Company agreed to hold a special stockholder’s meeting by mid- December 2015 and use its best efforts to increase its authorized common stock to 150,000,000. In the event the Company fails to obtain such approval, the Company will be obligated to pay financial penalties of 1% of the aggregate principal amount of the Notes, and the stated value of the Company’s Series E and Series H Preferred Stock of the investors in the Financing Transactions. The increase in the authorized common stock would allow the Company to have sufficient shares available to reserve for issuance upon conversion of the Series H Preferred Stock and the Convertible Promissory Notes.
Pursuant to that certain Securities Purchase Agreement dated September 30, 2015 in connection with the sale of the Company’s 12% Series H Preferred Stock and n connection with the issuance of the Company’s 12% Senior Secured Convertible Promissory Notes (the “Financing Transactions”), the Company agreed to hold a special stockholder’s meeting by mid- December 2015 and use its best efforts to increase its authorized common stock to 150,000,000. In the event the Company fails to obtain such approval, the Company will be obligated to pay financial penalties of 1% of the aggregate principal amount of the Notes, and the stated value of the Company’s Series E and Series H Preferred Stock of the investors in the Financing Transactions. The increase in the authorized common stock would allow the Company to have sufficient shares available to reserve for issuance upon conversion of the Series H Preferred Stock and the Convertible Promissory Notes.
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Here, the lack of any mention on the upcoming vote to increase OS to 150 mil is very interesting. Either he didn't want to irritate investors any further, or it is not a make or break outcome given the reduction in burn rate in addition to any revenues from the upcoming DX transaction.
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