NEW YORK, Sept. 23, 2021 /PRNewswire/ -- Stagwell Inc.
(Nasdaq: STGW) today announced the Company elected to convert all
outstanding shares of its Series 6 Convertible Preferred Stock, par
value $0.001 per share (the "Series 6
Preferred Stock") and its Series 8 Convertible Preferred Stock, par
value $0.001 per share (the "Series 8
Preferred Stock"). A Notice of Conversion was provided to each
holder of record of the Company's Series 6 and Series 8 Preferred
Stock on September 23, 2021. The
conversion will take place and be effective on October 7, 2021 (the "Conversion Date").
Pursuant to the Series 6 Notice, all 50,000 outstanding shares
of Series 6 Preferred Stock will be converted into 12,086,700
shares of the Company's Class A Common Stock, par value
$0.001 per share (the "Class A Common
Stock"), on the Conversion Date. Pursuant to the Series 8 Notice,
all 73,849 outstanding shares of Series 8 Preferred Stock will be
converted into 20,948,746 shares of the Company's Class A Common
"We feel confident the conversion of preferred shares is in the
best interests of all Stagwell common shareholders as it eliminates
any potential accretion," said Mark
Penn, Chairman and CEO, Stagwell Inc. "This action helps to
complete the process we embarked upon to streamline and simplify
Stagwell's capital structure, making this a more investable company
for the long term."
The shares of Class A Common Stock are being issued in reliance
upon the exemption set forth in Section 3(a)(9) of the Securities
Act of 1933, as amended, for securities exchanged by the Company
and existing security holders where no commission or other
remuneration is paid or given directly or indirectly by the Company
for soliciting such exchange.
About Stagwell Inc.
Stagwell (NASDAQ: STGW) is the challenger holding company built
to transform marketing. We deliver scaled creative performance for
the world's most ambitious brands, connecting culture-moving
creativity with leading-edge technology to harmonize the art and
science of marketing. Led by entrepreneurs, our 10,000+ specialists
in 30+ countries are unified under a single purpose: to drive
effectiveness and improve business results for their clients. Join
us at www.StagwellGlobal.com.
This press release contains "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of
1995, as amended, which include statements regarding the Company's
intentions or current expectations concerning, among other things,
the completion, timing and potential benefits of the conversion of
the Series 6 Preferred Stock and the Series 8 Preferred Stock.
Forward-looking statements are subject to known and unknown risks
and uncertainties, which could cause actual results to differ
materially from those expected or implied by the forward-looking
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SOURCE Stagwell Inc.