Item 5.03
Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year.
In connection with
the Offering, on July 8, 2019, the Company filed a Certificate of Designations, Preferences and Rights of the Series B Preferred
Stock (the “Series B COD”) with the Delaware Secretary of State.
Pursuant to the Series
B COD, 2,000 shares of the Company’s blank check preferred stock have been designated as Series B Preferred Stock. The Series
B Preferred Stock have the following rights, preferences, powers, privileges and restrictions, qualifications and limitations.
Dividends
.
The holders of Series B Preferred Stock shall have no dividend rights except as may be declared by the Company’s board of
directors.
Ranking
.
The Series B Preferred Stock rank (i) senior to the Company’s common stock, (ii) senior to or on parity with all other classes
and series of the Company’s preferred stock, unless otherwise specified and (iii) junior to the Series A Preferred Stock
with respect to the payment of dividends and distributions of the assets of the Company upon liquidation, dissolution or winding
up of the Company.
Voting
.
Except as otherwise required by law, holders of Series B Preferred Stock shall be entitled to vote, together as a class with the
holder of common stock, on all matters submitted to stockholders of the Company and shall have the number of votes equal to the
number of shares of common stock such Series B Preferred Stock are convertible into.
Conversion
.
Each share of Series B Preferred Stock shall be convertible into such number of shares of the Company’s common stock determined
by dividing (i) the Series B Preferred Stock Applicable Per Share Stated Value by (ii) the Series B Preferred Stock Conversion
Price. The “Series B Preferred Stock Applicable Per Share Stated Value” means $1,250 per share, subject to adjustment.
The “Series B Preferred Stock Conversion Price” means $0.05, subject to adjustment. The Company is prohibited from
effecting a conversion of the Series B Preferred Stock to the extent that, as a result of such exercise, the holder would beneficially
own more than 4.99% of the number of shares of common stock outstanding immediately after giving effect to the issuance of shares
of common stock upon conversion of the Series B Preferred Stock, which beneficial ownership limitation may be increased by the
holder up to, but not exceeding, 9.99%.
In connection with
the Exchange, on July 8, 2019, the Company filed a Certificate of Designations, Preferences and Rights of the Series A Preferred
Stock (the “Series A COD”) with the Delaware Secretary of State.
Pursuant to the
Series A COD, 6,000 shares of the Company’s blank check preferred stock have been designated as Series A Preferred Stock.
The Series A Preferred Stock have the following rights, preferences, powers, privileges and restrictions, qualifications and limitations.
Dividends
.
The holders of Series A Preferred Stock shall have no dividend rights except as may be declared by the Company’s board of
directors.
Ranking
.
The Series A Preferred Stock rank (i) senior to the Company’s common stock and Series B Preferred Stock and (ii) senior
to or on parity with all other classes and series of the Company’s preferred stock, unless otherwise specified, with respect
to the payment of dividends and distributions of the assets of the Company upon liquidation, dissolution or winding up of the
Company.
Voting
.
Except as otherwise required by law, holders of Series A Preferred Stock shall be entitled to vote, together as a class with the
holders of common stock, on all matters submitted to stockholders of the Company and shall have the number of votes equal to the
number of shares of common stock such Series A Preferred Stock are convertible into.
Conversion
.
Each share of Series A Preferred Stock shall be convertible into such number of shares of the Company’s common stock determined
by dividing (i) the Series A Preferred Stock Applicable Per Share Stated Value by (ii) the Series A Conversion Price. The “Series
A Preferred Stock Applicable Per Share Stated Value” means $1,250 per share, subject to adjustment. The “Series A
Preferred Stock Conversion Price” means $0.05, subject to adjustment. The Company is prohibited from effecting a conversion
of the Series A Preferred Stock to the extent that, as a result of such exercise, the holder would beneficially own more than
4.99% of the number of shares of common stock outstanding immediately after giving effect to the issuance of shares of common
stock upon conversion of the Series A Preferred Stock, which beneficial ownership limitation may be increased by the holder up
to, but not exceeding, 9.99%.
Redemption
.
At any time and from time to time on or after the issuance date of the Series A Preferred Stock and 24 months thereafter, any
holder of Series A Preferred Stock shall have the right to elect to have, out of funds legally available therefor, all or any
portion of the then shares of Series A Preferred Stock redeemed by the Company for a price per share of $980.39, plus all unpaid
accrued and accumulated dividends, if any.
The
foregoing description of the Series A COD and Series B COD are not complete and are qualified in their entirety by reference to
the full text of the Series A COD and Series B COD, copies of which are filed as Exhibit 3.1 and 3.2, respectively, to this Current
Report and are hereby incorporated by reference.