Whatever Warrants that the warrant holder hasn't exercised in the 30 days after notification.
Subject to the satisfaction of certain circumstances, the Company may compel the holders to exercise up to $250,000 of the warrants 30 days after the initial closing of the sale of the preferred stock. In addition, subject to the satisfaction of certain circumstances, the Company may call for cancellation any or all of the warrants following 90 days after their issuance, for a payment in cash equal to 8% of the aggregate exercise price of the warrants being called. The warrants subject to any such call notice will be cancelled 30 days following the Company’s payment of the call fee, provided that the warrant holders have not exercised the warrants prior to cancellation.
This is not a straight forward financing deal admittedly, I have read it through ten times already and still there are things which seems a bit confusing.
It also states this caveat:
The holders of the preferred stock are limited in the amount of stated value of the preferred stock they can convert on any trading day. The conversion cap limits conversions by the holders to the greater of $75,000 and an amount equal to 30% of the aggregate dollar trading volume of the Company’s common stock for the five trading days immediately preceding, and including, the conversion date. However, the conversion cap will be increased if the trading volume in the first 30 minutes of any trading session exceeds certain trailing average daily volume amounts. In addition, the holders of the preferred stock may not convert shares of preferred stock if, after giving effect to the conversion, a holder together with its affiliates would beneficially own in excess of 9.99% of the outstanding shares of the Company’s common stock.
How many affiliates are involved here, if there is only one, then they cannot own more than 9.99% of the OS according to the above
Subject to the satisfaction of certain circumstances, the Company may compel the holders to exercise up to $250,000 of the warrants 30 days after the initial closing of the sale of the preferred stock. In addition, subject to the satisfaction of certain circumstances, the Company may call for cancellation any or all of the warrants following 90 days after their issuance, for a payment in cash equal to 8% of the aggregate exercise price of the warrants being called. The warrants subject to any such call notice will be cancelled 30 days following the Company’s payment of the call fee, provided that the warrant holders have not exercised the warrants prior to cancellation.
This is not a straight forward financing deal admittedly, I have read it through ten times already and still there are things which seems a bit confusing.
It also states this caveat:
The holders of the preferred stock are limited in the amount of stated value of the preferred stock they can convert on any trading day. The conversion cap limits conversions by the holders to the greater of $75,000 and an amount equal to 30% of the aggregate dollar trading volume of the Company’s common stock for the five trading days immediately preceding, and including, the conversion date. However, the conversion cap will be increased if the trading volume in the first 30 minutes of any trading session exceeds certain trailing average daily volume amounts. In addition, the holders of the preferred stock may not convert shares of preferred stock if, after giving effect to the conversion, a holder together with its affiliates would beneficially own in excess of 9.99% of the outstanding shares of the Company’s common stock.
How many affiliates are involved here, if there is only one, then they cannot own more than 9.99% of the OS according to the above
