As
filed with the Securities and Exchange Commission on May 25, 2018
Registration
No. 333-
UNITED
STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
S-3
REGISTRATION
STATEMENT
UNDER
THE SECURITIES ACT OF 1933
AGEAGLE
AERIAL SYSTEMS INC.
(Exact
name of registrant as specified in its charter)
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Nevada
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88-0422242
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(State or
other jurisdiction of
incorporation or organization)
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(I.R.S. Employer
Identification Number)
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117
S. 4th Street
Neodesha,
Kansas 66567
Tel. No: (620) 325-6363
(Address,
including zip code, and telephone number, including area code, of registrant’s principal executive offices)
117
S. 4th Street
Neodesha,
Kansas 66567
Tel. No: (620) 325-6363
(Name,
address, including zip code, and telephone number, including area code, of agent for service)
Copies
to:
Mitchell
S. Nussbaum, Esq.
Tahra Wright, Esq.
David
J. Levine, Esq.
Loeb
& Loeb LLP
345 Park Avenue
New York, New York 10154
Telephone: (212) 407-4000
Facsimile: (212) 407-4990
Approximate
date of commencement of proposed sale to the public:
From time to time after the effective date of this registration statement
as determined by the Registrant.
If
the only securities being registered on this form are being offered pursuant to dividend or interest reinvestment plans, please
check the following box. ☐
If
any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 of
the Securities Act of 1933, other than securities offered only in connection with dividend or interest reinvestment plans, check
the following box. ☒
If
this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please
check the following box and lit the Securities Act registration statement number of the earlier effective registration statement
for the same offering. ☐
If
this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list
the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐
If
this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list
the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐
If
this Form is a registration statement pursuant to General Instruction I.D. or a post-effective amendment thereto that shall become
effective upon filing with the Commission pursuant to Rule 462(e) under the Securities Act, please check the following box. ☐
If
this Form is a post-effective amendment to a registration statement filed pursuant to General Instruction I.D. filed to register
additional securities or additional classes of securities pursuant to Rule 413(b) under the Securities Act, please check the following
box. ☐
Indicate
by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller
reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller
reporting company” in Rule 12b-2 of the Exchange Act. (Check one):
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Large accelerated filer ☐
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Accelerated filer ☐
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Non-accelerated filer ☐
(Do not check if a smaller reporting company)
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Smaller reporting
company ☒
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Emerging growth company ☐
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CALCULATION
OF REGISTRATION FEE
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Title
of each Class of Security being Registered
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Amount
being Registered (1)
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Proposed
Maximum Offering Price Per Security
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Proposed
Maximum Aggregate Offering Price
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Amount
of Registration Fee
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Common
Stock, $0.001 par value per share(2)
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(3)(4)
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(3)
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(3)
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(3)
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Preferred
Stock, $0.001 par value per share (2)
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(3)(4)
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(3)
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(3)
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(3)
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Debt
securities (2)
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(3)(4)
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(3)
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(3)
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(3)
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Warrants
(2)
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(3)(4)
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(3)
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(3)
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(3)
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Units
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(3)(4)
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(3)
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(3)
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(3)
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Total
Offering
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(3)
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(3)
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$
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10,000,000
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(2)
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$
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1,245
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Common
Stock, $0.001 par value per share
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4,282,480
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(5)
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2.71
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(6)
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11,605,520.80
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1,444.89
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Total
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$
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2,689.89
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(7)
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(1)
This registration statement includes $10,000,000 of securities which may be issued by the registrant from time to time in indeterminate
amounts and at indeterminate times. Securities registered hereunder may be sold separately, together or as units with other securities
registered hereunder.
(2)
Estimated solely for the purpose of calculating the amount of the registration fee pursuant to Rule 457(o) of the Securities Act
of 1933, as amended (the “Securities Act”).
(3)
Not required to be included in accordance with General Instruction II.D. of Form S-3 under the Securities Act.
(4)
Subject to footnote (1), there is also being registered hereunder such indeterminate amount of securities (including shares or
other classes of the registrant’s stock that may be issued upon reclassification of unissued, authorized stock of the registrant)
as may be issued in exchange for or upon conversion of, as the case may be, the other securities registered hereunder. No separate
consideration will be received for any securities registered hereunder that are issued in exchange for, or upon conversion of,
as the case may be, such other securities.
(5)
Reflects 4,282,480 shares of common stock that are being registered by the Selling Stockholders named herein.
(6)
Estimated solely for the purpose of calculating the registration fee in accordance with Rule 457(c) under the Securities Act of
1933, as amended, based on the average of the high and low prices of our common stock reported on the NYSE American on May 22,
2018.
(7)
Paid herewith.
The
Registrant hereby amends this Registration Statement on such date or dates as may be necessary to delay its effective date until
the Registrant shall file a further amendment that specifically states that this Registration Statement shall thereafter become
effective in accordance with Section 8(a) of the Securities Act or until this Registration Statement shall become effective on
such date as the Commission, acting pursuant to said Section 8(a), may determine.
Explanatory
Note
This
Registration Statement contains two prospectuses, as set forth below.
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Offering
Prospectus
. A prospectus to be used for the offering and sale, from time to
time in one or more offerings by the registrant of any combination of common stock, preferred
stock, debt securities, warrants or units having a maximum aggregate offering price not
exceeding $10,000,000, which prospectus also includes 4,222,480 shares of common stock
that may be offered by the Selling Stockholders named therein in a secondary offering
of such shares simultaneously with an offering by the registrant under this registration
statement.
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●
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Resale
Prospectus
. A prospectus to be used for the resale by the Selling Stockholders
of up to 4,282,480 shares of the Company’s common stock.
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The
Resale Prospectus is substantively identical to the Offering Prospectus, except for the following principal points:
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the
outside and inside covers are different;
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the
section entitled “About this Prospectus” on page 2 of the Offering Prospectus
is not included;
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the
section entitled “The Offering” on page 3 of the Offering Prospectus is different;
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the
section entitled “Use of Proceeds” on page 7 of the Offering Prospectus
is different;
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the
section entitled “Descriptions of the Securities We May Offer” beginning
on page 8 of the Offering Prospectus is not included;
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a
section entitled “ Selling Stockholders” is included; and
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the
section entitled “Plan of Distribution” beginning on page 17 of the
Offering Prospectus is different.
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The
Registrant has included in this Registration Statement a set of alternate pages for the Resale Prospectus to reflect the foregoing
differences.
The
Offering Prospectus will exclude the alternate pages and will be used for the public offering by the Registrant. The Resale Prospectus
will be substantively identical to the Offering Prospectus except for the addition or substitution of the alternate pages and
will be used for the resale offering by the Selling Stockholders.
THE
INFORMATION IN THIS PROSPECTUS IS NOT COMPLETE AND MAY BE CHANGED. WE MAY NOT SELL THESE SECURITIES UNTIL THE REGISTRATION STATEMENT
FILED WITH THE SECURITIES AND EXCHANGE COMMISSION IS EFFECTIVE. THIS PROSPECTUS IS NOT AN OFFER TO SELL THESE SECURITIES AND IS
NOT SOLICITING AN OFFER TO BUY THESE SECURITIES IN ANY JURISDICTION WHERE THE OFFER OR SALE IS NOT PERMITTED.
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Preliminary
Prospectus
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Subject
to Completion, Dated May 25, 2018
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AGEAGLE
AERIAL SYSTEMS INC.
$10,000,000
Common
Stock
Preferred Stock
Debt Securities
Warrants
Units
We
may offer and sell, from time to time in one or more offerings, any combination of common stock, preferred stock, debt securities,
warrants, or units having a maximum aggregate offering price of $10,000,000. When we decide to sell a particular class or series
of securities, we will provide specific terms of the offered securities in a prospectus supplement.
The
prospectus supplement may also add, update or change information contained in or incorporated by reference into this prospectus.
However, no prospectus supplement shall offer a security that is not registered and described in this prospectus at the time of
its effectiveness. You should read this prospectus and any prospectus supplement, as well as the documents incorporated by reference
or deemed to be incorporated by reference into this prospectus, carefully before you invest.This prospectus may not be used to
offer or sell our securities unless accompanied by a prospectus supplement relating to the offered securities.
Our
common stock is traded on the NYSE American under the symbol “UAVS.” On May 23, 2018, the last reported sale
price per share of our common stock was $2.52 per share.
We
may offer and sell our securities to or through one or more agents, underwriters, dealers or other third parties or directly to
one or more purchasers on a continuous or delayed basis. If agents, underwriters or dealers are used to sell our securities, we
will name them and describe their compensation in a prospectus supplement. The price to the public of our securities and the net
proceeds we expect to receive from the sale of such securities will also be set forth in a prospectus supplement. For additional
information on the methods of sale, you should refer to the section entitled “Plan of Distribution” in this prospectus.
As
of May 23, 2018, the aggregate market value of our outstanding common stock held by non-affiliates was approximately $11.06
million, which was calculated based on 4,389,247 shares of outstanding common stock held by non-affiliates, at a price
per share of $2.52. Pursuant to General Instruction I.B.6 of Form S-3, in no event will we sell the securities described
in this prospectus in a public primary offering with a value exceeding more than one-third (1/3) of the aggregate market value
of our common stock held by non-affiliates in any twelve (12)-month period, so long as the aggregate market value of our outstanding
common stock held by non-affiliates remains below $75 million. During the twelve (12) calendar months prior to and including the
date of this prospectus, we have not offered or sold any securities pursuant to General Instruction I.B.6 of Form S-3.
Investing
in our securities involves various risks. See “Risk Factors” on page 5 for more information on these risks.
Additional risks, if any, will be described in the prospectus supplement related to a potential offering under the heading “Risk
Factors”. You should review that section of the related prospectus supplement for a discussion of matters that investors
in such securities should consider.
Neither
the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities, or
passed upon the adequacy or accuracy of this prospectus or any accompanying prospectus supplement. Any representation to the contrary
is a criminal offense.
The
date of this Prospectus is , 2018
ABOUT
THIS PROSPECTUS
This
prospectus is part of a registration statement that we filed with the Securities and Exchange Commission (the “SEC”)
using a “shelf” registration process. Under this shelf registration process, we may offer from time to time securities
having a maximum aggregate offering price of $10,000,000,and the Selling Stockholders named herein may offer up to 4,282,480
shares of our common stock in a secondary offering of such shares simultaneously with an offering by us under this prospectus.
Each time we offer securities, we will prepare and file with the SEC a prospectus supplement that describes the specific amounts,
prices and terms of the securities we offer. The prospectus supplement also may add, update or change information contained in
this prospectus or the documents incorporated herein by reference. You should read carefully both this prospectus and any prospectus
supplement together with additional information described below under the caption “Where You Can Find More Information.”
This
prospectus does not contain all the information provided in the registration statement we filed with the SEC. For further information
about us or our securities offered hereby, you should refer to that registration statement, which you can obtain from the SEC
as described below under “Where You Can Find More Information.”
You
should rely only on the information contained or incorporated by reference in this prospectus or a prospectus supplement. We have
not authorized any other person to provide you with different information. If anyone provides you with different or inconsistent
information, you should not rely on it. This prospectus is not an offer to sell securities, and it is not soliciting an offer
to buy securities, in any jurisdiction where the offer or sale is not permitted. You should assume that the information appearing
in this prospectus or any prospectus supplement, as well as information we have previously filed with the SEC and incorporated
by reference, is accurate as of the date of those documents only. Our business, financial condition, results of operations and
prospects may have changed since those dates.
We
may sell securities through underwriters or dealers, through agents, directly to purchasers or through a combination of these
methods. We and our agents reserve the sole right to accept or reject in whole or in part any proposed purchase of securities.
The prospectus supplement, which we will prepare and file with the SEC each time we offer securities, will set forth the names
of any underwriters, agents or others involved in the sale of securities, and any applicable fee, commission or discount arrangements
with them. See “Plan of Distribution.”
Unless
otherwise mentioned or unless the context requires otherwise, when used in this prospectus, the terms “Company”, “AgEagle”,
“we”, “us”, and “our” refer to AgEagle Aerial Systems Inc. and its wholly-owned subsidiaries.
PROSPECTUS
SUMMARY
The
following summary, because it is a summary, may not contain all the information that may be important to you. This prospectus
incorporates important business and financial information about the Company that is not included in, or delivered with this prospectus.
Before making an investment, you should read the entire prospectus carefully. You should also carefully read the risks of investing
discussed under “Risk Factors” and the financial statements included in our other filings with the SEC, including
in our Annual Report on Form 10-K, which we filed with the SEC on March 23, 2018, and our final proxy statement/prospectus filed
with the SEC on February 14, 2018 relating to our recent business combination. This information is incorporated by reference into
this prospectus, and you can obtain it from the SEC as described below under the headings “Where You Can Find Additional
Information About Us” and “Incorporation of Certain Documents by Reference.”
We
will provide to each person, including any beneficial owner, to whom a prospectus is delivered, a copy of any or all of the information
that has been incorporated by reference in the prospectus but not delivered with the prospectus. You may request a copy of these
filings, excluding the exhibits to such filings which we have not specifically incorporated by reference in such filings, at no
cost, by writing us at the following address: AgEagle Aerial Systems Inc., 117 S. 4
th
Street, Neodesha, Kansas 66757.
Our telephone number is (620) 325-6363.
The
Offering
This
prospectus is part of a registration statement that we filed with the Securities and Exchange Commission (the “SEC”)
utilizing a shelf registration process. Under this shelf registration process, we may sell any combination of:
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common
stock;
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preferred
stock;
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debt
securities, in one or more series;
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warrants
to purchase any of the securities listed above; and/or
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units
consisting of one or more of the foregoing.
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in
one or more offerings up to a total dollar amount of $10,000,000.
This
prospectus also includes 4,282,480 shares of common stock which may be offered by the Selling Stockholders in a secondary
offering of such shares simultaneously with an offering by us under this prospectus.
This
prospectus provides you with a general description of the securities we may offer. Each time we sell securities, we will provide
a prospectus supplement that will contain specific information about the terms of that specific offering and include a discussion
of any risk factors or other special considerations that apply to those securities. The prospectus supplement may also add, update
or change information contained in this prospectus. You should read both this prospectus and any prospectus supplement together
with the additional information described under the heading “Where You Can Find Additional Information About Us.”
Our
Company
We
design, produce, distribute and support technologically-advanced small unmanned aerial vehicles (UAVs or drones) that we offer
for sale commercially to the precision agriculture industry. Our first commercially available product was the AgEagle Classic
which was followed shortly thereafter by the RAPID System. As we improved and matured our product we launched the RX-60 and subsequently
our current product is the RX-48. In February 2016, we signed a worldwide distribution agreement with Raven Industries, Inc. (“Raven”)
under which Raven will purchase the RX-60 and RX-48 for the agriculture markets for resale through their network of dealers worldwide.
Raven and its network of dealers offer the RX-60 and RX-48 systems to the public, including a subscription for a software package
that is provided by a third party. The first shipment of our RX-60 system to Raven occurred in March 2016.
The
success we have achieved with our products, which we believe has carried over into the new RX-48, stems from our ability to invent
and deliver advanced solutions utilizing our proprietary technologies and trade secrets that help farmers, agronomists and other
precision agricultural professionals operate more effectively and efficiently. Our core technological capabilities, developed
over five years of innovation, include a lightweight laminated shell that allows the UAV platform to perform under challenging
flying conditions, a camera with a Near Infrared (NIR) filter, a rugged foot launcher (RX-60), and high end software provided
by third parties that automates drone flights and provides geo-referenced data.
Our
principal executive offices are located at 117 S. 4th Street, Neodesha, Kansas 66757 and our telephone number is (620) 325-6363.
Our website address is
http://www.ageagle.com
. Information contained on, or accessed through our website is not intended
to constitute and shall not be deemed to constitute part of this prospectus.
Corporate
History; Recent Business Combination
We
were formerly known as Millennium Plastics Corporation and were incorporated in the State of Nevada on March 31, 1999. We abandoned
a prior business plan focusing on the development of biodegradable plastic materials. In August 2006, we acquired Midwest Energy,
Inc., a Nevada corporation pursuant to a reverse merger. After such merger, Midwest Energy became a wholly-owned subsidiary, and
as a result of such merger, the former Midwest Energy stockholders controlled approximately 98% of our outstanding shares of common
stock. We changed our name to EnerJex Resources, Inc., in connection with this merger, and in November 2007, we changed the name
of Midwest Energy (one of our wholly-owned subsidiaries) to EnerJex Kansas, Inc. (“EnerJex Kansas”). All of our operations
conducted prior to this merger were through EnerJex Kansas, Inc., Black Sable Energy, LLC, a Texas limited liability company (“Black
Sable”) and Black Raven Energy, Inc. a Nevada corporation (“Black Raven”). Our leasehold interests were held
in our wholly-owned subsidiaries Black Sable, Working Interest, LLC, EnerJex Kansas and Black Raven.
On
March 26, 2018, we consummated the transactions contemplated by that certain Agreement and Plan of Merger (the “Merger Agreement”),
dated October 19, 2017, pursuant to which AgEagle Merger Sub, Inc., a Nevada corporation and our wholly-owned subsidiary, merged
with and into AgEagle Aerial Systems, Inc., a privately held company organized under the laws of the state of Nevada (“AgEagle
Sub”), with AgEagle Sub surviving as our wholly-owned subsidiary (the “Merger”). In connection with the Merger,
we changed our name to AgEagle Aerial Systems Inc. and AgEagle Sub changed its name to “Eagle Aerial Systems, Inc.”
Our common stock continues to trade on the NYSE American under our new symbol “UAVS” since March 27, 2018.
Following
the Merger,we are headquartered in Neodesha, Kansas, and are now a leading manufacturer of unmanned aerial vehicles focused on
providing actionable data to the precision agriculture industry. AgEagle Sub was founded in 2010 by Bret Chilcott, our President
and Chief Executive Officer, as Solutions by Chilcott, LLC, a Kansas limited liability company. In April 2015, Solutions by Chilcott
was converted into a corporation and then merged into AgEagle Sub, a newly-formed Nevada corporation.
Our
history is rooted in advanced composite parts manufacturing, first for commercial trucks and then as a vendor to the government
manufacturing micro wind turbine blades. Around 2011, we also began applying our expertise in composite parts manufacturing on
a research project at Kansas State University that was attempting to use model airplanes to monitor and analyze crops. After several
months, Mr. Chilcott and KSU agreed to continue the commercialization phase of this project under the auspices of AgEagle, and
in 2012, we completed the first prototype of our UAV. Over the next year, Mr. Chilcott traveled throughout the mid-western United
States meeting with farmers and agronomists, compiling test data, operating history, market information, and then in early 2014,
AgEagle sold its first commercial UAV.
RISK
FACTORS
Investing
in our securities involves risk. The prospectus supplement applicable to a particular offering of securities will contain a discussion
of the risks applicable to an investment in the Company and to the particular types of securities that we are offering under that
prospectus supplement. Before making an investment decision, you should carefully consider the risks described under “Risk
Factors” in the applicable prospectus supplement and the risks described in our final proxy statement/prospectus filed with
the SEC on February 14, 2018 pursuant to Rule 424(b)(3) of the Securities Act in connection with our recent business combination,
our Annual Report on Form 10-K and any updates to our risk factors in our Quarterly Reports on Form 10-Q, together with all of
the other information appearing in or incorporated by reference into this prospectus and any applicable prospectus supplement,
in light of your particular investment objectives and financial circumstances. Our business, financial condition or results of
operations could be materially adversely affected by any of these risks. The trading price of our securities could decline due
to any of these risks, and you may lose all or part of your investment.
FORWARD-LOOKING
STATEMENTS
This
prospectus or any accompanying prospectus supplement, including the documents that we incorporate by reference, may contain forward-looking
statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and
Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Forward-looking statements include
those that express plans, anticipation, intent, contingency, goals, targets or future development and/or otherwise are not statements
of historical fact. Any forward-looking statements are based on our current expectations and projections about future events and
are subject to risks and uncertainties known and unknown that could cause actual results and developments to differ materially
from those expressed or implied in such statements.
In
some cases, you can identify forward-looking statements by terminology, such as “expects,” “anticipates,”
“intends,” “estimates,” “plans,” “believes,” “seeks,” “may,”
“should”, “could” or the negative of such terms or other similar expressions. Accordingly, these statements
involve estimates, assumptions and uncertainties that could cause actual results to differ materially from those expressed in
them. Any forward-looking statements are qualified in their entirety by reference to the risk factors described herein and those
included in any accompanying prospectus supplement or in any document incorporated by reference into this prospectus.
You
should read this prospectus and any accompanying prospectus supplement and the documents that we reference herein and therein
and have filed as exhibits to the registration statement, of which this prospectus is part, completely and with the understanding
that our actual future results may be materially different from what we concurrently expect. You should assume that the information
appearing in this prospectus, any accompanying prospectus supplement and any document incorporated herein by reference is accurate
as of its date only. Because the risk factors referred to above could cause actual results or outcomes to differ materially from
those expressed in any forward-looking statements made by us or on our behalf, you should not place undue reliance on any forward-looking
statements. Further, any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation
to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to
reflect the occurrence of unanticipated events. New factors emerge from time to time, and it is not possible for us to predict
which factors will arise. In addition, we cannot assess the impact of each factor on our business or the extent to which any factor,
or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.
We qualify all of the information presented in this prospectus, any accompanying prospectus supplement and any document incorporated
herein by reference, and particularly our forward-looking statements, by these cautionary statements.
USE
OF PROCEEDS
Except
as otherwise provided in the applicable prospectus supplement, we intend to use the net proceeds from the sale of the securities
covered by this prospectus for general corporate purposes, which may include, but is not limited to, working capital, capital
expenditures, research and development expenditures and acquisitions of new technologies or businesses.The precise amount, use
and timing of the application of such proceeds will depend upon our funding requirements and the availability and cost of other
capital. Additional information on the use of net proceeds from an offering of securities covered by this prospectus may be set
forth in the prospectus supplement relating to the specific offering.
DESCRIPTIONS
OF THE SECURITIES WE MAY OFFER
The
descriptions of the securities contained in this prospectus, together with any applicable prospectus supplement, summarize all
the material terms and provisions of the various types of securities that we may offer. We will describe in the applicable prospectus
supplement relating to a particular offering the specific terms of the securities offered by that prospectus supplement. We will
indicate in the applicable prospectus supplement if the terms of the securities differ from the terms we have summarized below.
We will also include in the prospectus supplement information, where applicable, material United States federal income tax considerations
relating to the securities.
We
may sell from time to time, in one or more offerings:
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shares
of our common stock;
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debt
securities, in one or more series;
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shares
of our preferred stock;
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warrants
to purchase any of the securities listed above; and/or
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units
consisting of one or more of the foregoing.
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This
prospectus may not be used to consummate a sale of securities unless it is accompanied by a prospectus supplement.
Capital
Stock
General
The
following description of common stock and preferred stock, together with the additional information we include in any applicable
prospectus supplement, summarizes the material terms and provisions of the common stock and preferred stock that we may offer
under this prospectus but is not complete. For the complete terms of our common stock and preferred stock, please refer to our
certificate of incorporation, as may be amended from time to time, any certificates of designation for our preferred stock, and
our bylaws, as amended from time to time. The Nevada Revised Statutes (“NRS”) may also affect the terms of these securities.
While the terms we have summarized below will apply generally to any future common stock or preferred stock that we may offer,
we will describe the specific terms of any series of these securities in more detail in the applicable prospectus supplement.
If we so indicate in a prospectus supplement, the terms of any common stock or preferred stock we offer under that prospectus
supplement may differ from the terms we describe below.
As
of May 23, 2018, our authorized capital stock consisted of 275,000,000 shares, consisting of 250,000,000 shares of common
stock par value $.001 per share, and 25,000,000 shares of preferred stock, par value $.001 per share of which 10,000 shares have
been designated as Series C Preferred Stock. The authorized and unissued shares of common stock and the authorized and undesignated
shares of preferred stock are available for issuance without further action by our stockholders, unless such action is required
by applicable law or the rules of any stock exchange on which our securities may be listed. Unless approval of our stockholders
is so required, our board of directors will not seek stockholder approval for the issuance and sale of our common stock or preferred
stock.
Common
Stock
As
of May 23, 2018, there were 10,264,566 shares of common stock issued and outstanding. Each holder of shares of common
stock is entitled to one vote per share at stockholders’ meetings.
Dividend
Rights
Subject
to the rights of the holders of preferred stock, as discussed below, the holders of outstanding common stock are entitled to receive
dividends out of funds legally available at the times and in the amounts that the Board of Directors may determine.
Voting
Rights
Each
holder of common stock is entitled to one vote for each share of common stock held on all matters submitted to a vote of stockholders.
Cumulative voting for the election of directors is not provided for in our certificate of incorporation, as amended and restated.
Any action other than the election of directors shall be authorized by a majority of the votes cast, except where the NRS prescribes
a different percentage of votes and/or exercise of voting power.
No
Preemptive or Similar Rights
Holders
of our common stock do not have preemptive rights, and shares of our common stock are not convertible or redeemable.
Right
to Receive Liquidation Distributions
Subject
to the rights of the holders of preferred stock, as discussed below, upon our dissolution, liquidation or winding-up, our assets
legally available for distribution to our stockholders are distributable ratably among the holders of common stock.
Preferred
Stock
We
have 25,000,000 authorized shares of preferred stock par value $0.001 per share, of which 10,000 shares are designated as series
C preferred stock and are issued and outstanding as of the date of this prospectus.
Our
board of directors may also divide the shares of preferred stock into series and fix and determine the relative rights and preferences
of the preferred stock, such as the designation of series and the number of shares constituting such series, dividend rights,
redemption and sinking fund provisions, liquidation and dissolution preferences, conversion or exchange rights and voting rights,
if any. Issuance of preferred stock by our board of directors will result in such shares having dividend and/or liquidation preferences
senior to the rights of the holders of our common stock and could dilute the voting rights of the holders of our common stock.
Once designated by our board of directors, each series of preferred stock will have specific financial and other terms that will
be described in a prospectus supplement. The description of the preferred stock that is set forth in any prospectus supplement
is not complete without reference to the documents that govern the preferred stock. These include our certificate of incorporation,
as amended, and any certificates of designation that our board of directors may adopt. Prior to the issuance of shares of each
series of preferred stock, the board of directors is required by the NRS and our articles of incorporation to adopt resolutions
and file a certificate of designations with the Secretary of State of the State of Nevada. The certificate of designations fixes
for each class or series the designations, powers, preferences, rights, qualifications, limitations and restrictions, including,
but not limited to, some or all of the following:
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the
number of shares constituting that series and the distinctive designation of that series,
which number may be increased or decreased (but not below the number of shares then outstanding)
from time to time by action of the board of directors;
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the
dividend rate and the manner and frequency of payment of dividends on the shares of that
series, whether dividends will be cumulative, and, if so, from which date;
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whether
that series will have voting rights, in addition to any voting rights provided by law,
and, if so, the terms of such voting rights;
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whether
that series will have conversion privileges, and, if so, the terms and conditions of
such conversion, including provision for adjustment of the conversion rate in such events
as the board of directors may determine;
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whether
or not the shares of that series will be redeemable, and, if so, the terms and conditions
of such redemption;
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whether
that series will have a sinking fund for the redemption or purchase of shares of that
series, and, if so, the terms and amount of such sinking fund;
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whether
or not the shares of the series will have priority over or be on a parity with or be
junior to the shares of any other series or class in any respect;
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the
rights of the shares of that series in the event of voluntary or involuntary liquidation,
dissolution or winding up of the corporation, and the relative rights or priority, if
any, of payment of shares of that series; and
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any
other relative rights, preferences and limitations of that series.
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All
shares of preferred stock offered hereby will, when issued, be fully paid and nonassessable, including shares of preferred stock
issued upon the exercise of preferred stock warrants or subscription rights, if any.
Although
our board of directors has no intention at the present time of doing so, it could authorize the issuance of a series of preferred
stock that could, depending on the terms of such series, impede the completion of a merger, tender offer or other takeover attempt.
Options/Warrants
As
of May 23, 2018, we had outstanding options to purchase a total of 1,134,829 shares of our common stock, and
outstanding warrants to purchase a total of 662,577 shares of our common stock.
Warrants
The
following description, together with the additional information we may include in any applicable prospectus supplement, summarizes
the material terms and provisions of the warrants that we may offer under this prospectus and any related warrant agreement and
warrant certificate. While the terms summarized below will apply generally to any warrants that we may offer, we will describe
the specific terms of any series of warrants in more detail in the applicable prospectus supplement. If we indicate in the prospectus
supplement, the terms of any warrants offered under that prospectus supplement may differ from the terms described below. Specific
warrant agreements will contain additional important terms and provisions and will be incorporated by reference as an exhibit
to the registration statement which includes this prospectus.
General
We
may issue warrants for the purchase of common stock, preferred stock and/or debt securities in one or more series. We may issue
warrants independently or together with common stock, preferred stock and/or debt securities, and the warrants may be attached
to or separate from these securities.
We
will evidence each series of warrants by warrant certificates that we may issue under a separate agreement. We may enter into
a warrant agreement with a warrant agent. Each warrant agent may be a bank that we select which has its principal office in the
United States. We may also choose to act as our own warrant agent. We will indicate the name and address of any such warrant agent
in the applicable prospectus supplement relating to a particular series of warrants.
We
will describe in the applicable prospectus supplement the terms of the series of warrants, including:
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the
offering price and aggregate number of warrants offered;
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if
applicable, the designation and terms of the securities with which the warrants are issued
and the number of warrants issued with each such security or each principal amount of
such security;
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if
applicable, the date on and after which the warrants and the related securities will
be separately transferable;
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in
the case of warrants to purchase debt securities, the principal amount of debt securities
purchasable upon exercise of one warrant and the price at, and currency in which, this
principal amount of debt securities may be purchased upon such exercise;
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in
the case of warrants to purchase common stock or preferred stock, the number or amount
of shares of common stock or preferred stock, as the case may be, purchasable upon the
exercise of one warrant and the price at which and currency in which these shares may
be purchased upon such exercise;
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the
manner of exercise of the warrants, including any cashless exercise rights;
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the
warrant agreement under which the warrants will be issued;
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the
effect of any merger, consolidation, sale or other disposition of our business on the
warrant agreement and the warrants;
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anti-dilution
provisions of the warrants, if any;
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the
terms of any rights to redeem or call the warrants;
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any
provisions for changes to or adjustments in the exercise price or number of securities
issuable upon exercise of the warrants;
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the
dates on which the right to exercise the warrants will commence and expire or, if the
warrants are not continuously exercisable during that period, the specific date or dates
on which the warrants will be exercisable;
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the
manner in which the warrant agreement and warrants may be modified;
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the
identities of the warrant agent and any calculation or other agent for the warrants;
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federal
income tax consequences of holding or exercising the warrants;
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the
terms of the securities issuable upon exercise of the warrants;
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any
securities exchange or quotation system on which the warrants or any securities deliverable
upon exercise of the warrants may be listed or quoted; and
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any
other specific terms, preferences, rights or limitations of or restrictions on the warrants.
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Before
exercising their warrants, holders of warrants will not have any of the rights of holders of the securities purchasable upon such
exercise, including:
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in
the case of warrants to purchase debt securities, the right to receive payments of principal
of, or premium, if any, or interest on, the debt securities purchasable upon exercise
or to enforce covenants in the applicable indenture; or
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in
the case of warrants to purchase common stock or preferred stock, the right to receive
dividends, if any, or, payments upon our liquidation, dissolution or winding up or to
exercise voting rights, if any.
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Exercise
of Warrants
Each
warrant will entitle the holder to purchase the securities that we specify in the applicable prospectus supplement at the exercise
price that we describe in the applicable prospectus supplement. Unless we otherwise specify in the applicable prospectus supplement,
holders of the warrants may exercise the warrants at any time up to 5:00 P.M. eastern time on the expiration date that we set
forth in the applicable prospectus supplement. After the close of business on the expiration date, unexercised warrants will become
void.
Holders
of the warrants may exercise the warrants by delivering the warrant certificate representing the warrants to be exercised together
with specified information, and paying the required exercise price by the methods provided in the applicable prospectus supplement.
We will set forth on the reverse side of the warrant certificate, and in the applicable prospectus supplement, the information
that the holder of the warrant will be required to deliver to the warrant agent.
Upon
receipt of the required payment and the warrant certificate properly completed and duly executed at the corporate trust office
of the warrant agent or any other office indicated in the applicable prospectus supplement, we will issue and deliver the securities
purchasable upon such exercise. If fewer than all of the warrants represented by the warrant certificate are exercised, then we
will issue a new warrant certificate for the remaining amount of warrants.
Enforceability
of Rights By Holders of Warrants
Any
warrant agent will act solely as our agent under the applicable warrant agreement and will not assume any obligation or relationship
of agency or trust with any holder of any warrant. A single bank or trust company may act as warrant agent for more than one issue
of warrants. A warrant agent will have no duty or responsibility in case of any default by us under the applicable warrant agreement
or warrant, including any duty or responsibility to initiate any proceedings at law or otherwise, or to make any demand upon us.
Any holder of a warrant may, without the consent of the related warrant agent or the holder of any other warrant, enforce by appropriate
legal action the holder’s right to exercise, and receive the securities purchasable upon exercise of, its warrants in accordance
with their terms.
Warrant
Agreement Will Not Be Qualified Under Trust Indenture Act
No
warrant agreement will be qualified as an indenture, and no warrant agent will be required to qualify as a trustee, under the
Trust Indenture Act. Therefore, holders of warrants issued under a warrant agreement will not have the protection of the Trust
Indenture Act with respect to their warrants.
Governing
Law
Each
warrant agreement and any warrants issued under the warrant agreements will be governed by New York law.
Calculation
Agent
Any
calculations relating to warrants may be made by a calculation agent, an institution that we appoint as our agent for this purpose.
The prospectus supplement for a particular warrant will name the institution that we have appointed to act as the calculation
agent for that warrant as of the original issue date for that warrant, if any. We may appoint a different institution to serve
as calculation agent from time to time after the original issue date without the consent or notification of the holders. The calculation
agent’s determination of any amount of money payable or securities deliverable with respect to a warrant will be final and
binding in the absence of manifest error.
Debt
Securities
The
following description, together with the additional information we include in any applicable prospectus supplements, summarizes
the material terms and provisions of the debt securities that we may offer under this prospectus. While the terms we have
summarized below will generally apply to any future debt securities we may offer under this prospectus, we will describe the particular
terms of any debt securities that we may offer in more detail in the applicable prospectus supplement. The terms of any debt
securities we offer under a prospectus supplement may differ from the terms we describe below. As of the date of this prospectus,
we have no outstanding registered debt securities.
We
will issue senior notes under a senior indenture, which we will enter into with the trustee to be named in the senior indenture.
We will issue subordinated notes under a subordinated indenture, which we will enter into with the trustee to be named in the
subordinated indenture. We have filed forms of these documents as exhibits to the Registration Statement of which this prospectus
is a part. We use the term “indentures” to refer to both the senior indenture and the subordinated indenture.
The
indentures will be qualified under the Trust Indenture Act of 1939. References to the Trust Indenture Act of 1939 include all
amendments thereto. We use the term “debenture trustee” to refer to either the senior trustee or the subordinated
trustee, as applicable.
The
following summaries of material provisions of the senior notes, the subordinated notes and the indentures are subject to, and
qualified in their entirety by reference to, all the provisions of the indenture applicable to a particular series of debt securities,
and all supplements thereto. We urge you to read the applicable prospectus supplements related to the debt securities that we
sell under this prospectus, as well as the complete indentures that contain the terms of the debt securities. Except as we
may otherwise indicate, the terms of the senior and the subordinated indentures are identical.
General
The
terms of each series of debt securities will be established by or pursuant to a resolution of our board of directors and set forth
or determined in the manner provided in an officers’ certificate or by a supplemental indenture. Debt securities may be
issued in separate series without limitation as to aggregate principal amount. We may specify a maximum aggregate principal amount
for the debt securities of any series. In addition, the particular terms of each series of debt securities will be described in
a prospectus supplement relating to such series, including any pricing supplement. The prospectus supplement will set forth, among
other things:
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the
title;
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the
principal amount being offered, and, if a series, the total amount authorized and the total amount outstanding;
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any
limit on the amount that may be issued;
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whether
or not we will issue the series of debt securities in global form and, if so, the terms and who the depositary will be;
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the
maturity date;
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whether
and under what circumstances, if any, we will pay additional amounts on any debt securities held by a person who is not a
U.S. person for tax purposes, and whether we can redeem the debt securities if we have to pay such additional amounts;
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the
annual interest rate, which may be fixed or variable, or the method for determining the rate, the date interest will begin
to accrue, the dates interest will be payable and the regular record dates for interest payment dates or the method for determining
such dates;
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the
terms of the subordination of any series of subordinated debt, if applicable;
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the
place where payments will be payable;
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restrictions
on transfer, sale or other assignment, if any;
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our
right, if any, to defer payment of interest and the maximum length of any such deferral period;
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the
date, if any, after which, the conditions upon which, and the price at which we may, at our option, redeem the series of debt
securities pursuant to any optional or provisional redemption provisions, and any other applicable terms of those redemption
provisions;
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the
date, if any, on which, and the price at which we are obligated, pursuant to any mandatory sinking fund or analogous fund
provisions or otherwise, to redeem, or at the holder’s option to purchase, the series of debt securities and the currency
or currency unit in which the debt securities are payable;
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whether
the indenture will restrict our ability and/or the ability of our subsidiaries to, among other things:
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incur
additional indebtedness;
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issue
additional securities;
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create
liens;
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pay
dividends and make distributions in respect of our capital stock and the capital stock of our subsidiaries;
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redeem
capital stock;
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place
restrictions on our subsidiaries’ ability to pay dividends, make distributions or transfer assets;
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make
investments or other restricted payments;
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sell
or otherwise dispose of assets;
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enter
into sale-leaseback transactions;
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engage
in transactions with stockholders and affiliates;
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issue
or sell stock of our subsidiaries; or
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effect
a consolidation or merger;
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whether
the indenture will require us to maintain any interest coverage, fixed charge, cash flow-based, asset-based or other financial
ratios;
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information
describing any book-entry features;
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provisions
for a sinking fund purchase or other analogous fund, if any;
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whether
the debt securities are to be offered at a price such that they will be deemed to be offered at an “original issue discount”
as defined in paragraph (a) of Section 1273 of the Internal Revenue Code;
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the
procedures for any auction and remarketing, if any;
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the
denominations in which we will issue the series of debt securities, if other than denominations of $1,000 and any integral
multiple thereof;
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if
other than dollars, the currency in which the series of debt securities will be denominated; and
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any
other specific terms, preferences, rights or limitations of, or restrictions on, the debt securities, including any events
of default that are in addition to those described in this prospectus or any covenants provided with respect to the debt securities
that are in addition to those described above, and any terms that may be required by us or advisable under applicable laws
or regulations or advisable in connection with the marketing of the debt securities.
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Conversion
or Exchange Rights
We
will set forth in the prospectus supplement the terms on which a series of debt securities may be convertible into or exchangeable
for common stock or other securities of ours or a third party, including the conversion or exchange rate, as applicable, or how
it will be calculated, and the applicable conversion or exchange period. We will include provisions as to whether conversion
or exchange is mandatory, at the option of the holder or at our option. We may include provisions pursuant to which the number
of our securities or the securities of a third party that the holders of the series of debt securities receive upon conversion
or exchange would, under the circumstances described in those provisions, be subject to adjustment, or pursuant to which those
holders would, under those circumstances, receive other property upon conversion or exchange, for example in the event of our
merger or consolidation with another entity.
Consolidation,
Merger or Sale
The
indentures in the forms initially filed as exhibits to the registration statement of which this prospectus is a part do not contain
any covenant that restricts our ability to merge or consolidate, or sell, convey, transfer or otherwise dispose of all or substantially
all of our assets. However, any successor of ours or the acquirer of such assets must assume all of our obligations under
the indentures and the debt securities.
If
the debt securities are convertible for our other securities, the person with whom we consolidate or merge or to whom we sell
all of our property must make provisions for the conversion of the debt securities into securities that the holders of the debt
securities would have received if they had converted the debt securities before the consolidation, merger or sale.
Events
of Default under the Indenture
The
following are events of default under the indentures in the forms initially filed as exhibits to the Registration Statement with
respect to any series of debt securities that we may issue:
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if
we fail to pay interest when due and payable and our failure continues for 90 days and the time for payment has not been extended
or deferred;
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if
we fail to pay the principal, sinking fund payment or premium, if any, when due and payable and the time for payment has not
been extended or delayed;
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if
we fail to observe or perform any other covenant contained in the debt securities or the indentures, other than a covenant
specifically relating to another series of debt securities, and our failure continues for 90 days after we receive notice
from the debenture trustee or holders of at least 25% in aggregate principal amount of the outstanding debt securities of
the applicable series; and
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if
specified events of bankruptcy, insolvency or reorganization occur.
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If
an event of default with respect to debt securities of any series occurs and is continuing, other than an event of default specified
in the last bullet point above, the debenture trustee or the holders of at least 25% in aggregate principal amount of the outstanding
debt securities of that series, by notice to us in writing, and to the debenture trustee if notice is given by such holders, may
declare the unpaid principal of, premium, if any, and accrued interest, if any, due and payable immediately. If an event
of default specified in the last bullet point above occurs with respect to us, the principal amount of and accrued interest, if
any, of each issue of debt securities then outstanding shall be due and payable without any notice or other action on the part
of the debenture trustee or any holder.
The
holders of a majority in principal amount of the outstanding debt securities of an affected series may waive any default or event
of default with respect to the series and its consequences, except defaults or events of default regarding payment of principal,
premium, if any, or interest, unless we have cured the default or event of default in accordance with the indenture. Any
waiver shall cure the default or event of default.
Subject
to the terms of the indentures, if an event of default under an indenture shall occur and be continuing, the debenture trustee
will be under no obligation to exercise any of its rights or powers under such indenture at the request or direction of any of
the holders of the applicable series of debt securities, unless such holders have offered the debenture trustee reasonable indemnity.
The holders of a majority in principal amount of the outstanding debt securities of any series will have the right to direct the
time, method and place of conducting any proceeding for any remedy available to the debenture trustee, or exercising any trust
or power conferred on the debenture trustee, with respect to the debt securities of that series, provided that:
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the
direction so given by the holder is not in conflict with any law or the applicable indenture; and
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subject
to its duties under the Trust Indenture Act of 1939, the debenture trustee need not take any action that might involve it
in personal liability or might be unduly prejudicial to the holders not involved in the proceeding.
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A
holder of the debt securities of any series will only have the right to institute a proceeding under the indentures or to appoint
a receiver or trustee, or to seek other remedies if:
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the
holder has given written notice to the debenture trustee of a continuing event of default with respect to that series;
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the
holders of at least 25% in aggregate principal amount of the outstanding debt securities of that series have made written
request, and such holders have offered reasonable indemnity, to the debenture trustee to institute the proceeding as trustee;
and
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the
debenture trustee does not institute the proceeding and does not receive from the holders of a majority in aggregate principal
amount of the outstanding debt securities of that series other conflicting directions within 90 days after the notice, request
and offer.
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These
limitations do not apply to a suit instituted by a holder of debt securities if we default in the payment of the principal, premium,
if any, or interest on, the debt securities.
We
will periodically file statements with the debenture trustee regarding our compliance with specified covenants in the indentures.
Modification
of Indenture; Waiver
We
and the debenture trustee may change an indenture without the consent of any holders with respect to specific matters, including:
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to
fix any ambiguity, defect or inconsistency in the indenture;
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to
comply with the provisions described above under “
—
Consolidation, Merger or Sale”;
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to
comply with any requirements of the SEC in connection with the qualification of any indenture under the Trust Indenture Act
of 1939;
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to
evidence and provide for the acceptance of appointment by a successor trustee;
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to
provide for uncertificated debt securities and to make all appropriate changes for such purpose;
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to
add to, delete from, or revise the conditions, limitations and restrictions on the authorized amount, terms or purposes of
issuance, authorization and delivery of debt securities or any series, as set forth in the indenture;
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to
provide for the issuance of and establish the form and terms and conditions of the debt securities of any series as provided
under “
—
General” to establish the form of any certifications required to be furnished pursuant to
the terms of the indenture or any series of debt securities, or to add to the rights of the holders of any series of debt
securities;
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to
add to our covenants such new covenants, restrictions, conditions or provisions for the protection of the holders, to make
the occurrence, or the occurrence and the continuance, of a default in any such additional covenants, restrictions, conditions
or provisions an event of default, or to surrender any of our rights or powers under the indenture; or
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to
change anything that does not materially adversely affect the interests of any holder of debt securities of any series.
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In
addition, under the indentures, the rights of holders of a series of debt securities may be changed by us and the debenture trustee
with the written consent of the holders of at least a majority in aggregate principal amount of the outstanding debt securities
of each series that is affected. However, we and the debenture trustee may only make the following changes with the consent of
each holder of any outstanding debt securities affected:
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extending
the fixed maturity of the series of debt securities;
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reducing
the principal amount, reducing the rate of or extending the time of payment of interest, or reducing any premium payable upon
the redemption of any debt securities; or
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●
|
reducing
the percentage of debt securities, the holders of which are required to consent to any amendment, supplement, modification
or waiver.
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Discharge
Each
indenture provides that we can elect to be discharged from our obligations with respect to one or more series of debt securities,
except that the following obligations, among others survive until the maturity date or the redemption date:
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●
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register
the transfer or exchange of debt securities of the series;
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●
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replace
stolen, lost or mutilated debt securities of the series;
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maintain
paying agencies;
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●
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hold
monies for payment in trust; and
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●
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appoint
any successor trustee;
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and
the following obligations survive the maturity date or the redemption date:
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●
|
recover
excess money held by the debenture trustee; and
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●
|
compensate
and indemnify the debenture trustee.
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As
more fully set forth in the indentures, in order to exercise our rights to be discharged, we must either deliver for cancellation
all securities of a series to the debenture trustee or must deposit with the debenture trustee money or government obligations
sufficient to pay all the principal of, any premium, if any, and interest on, the debt securities of the series on the dates payments
are due.
Form,
Exchange and Transfer
We
will issue the debt securities of each series only in fully registered form without coupons and, unless we otherwise specify in
the applicable prospectus supplement, in denominations of $1,000 and any integral multiple thereof. The indentures provide
that we may issue debt securities of a series in temporary or permanent global form and as book-entry securities that will be
deposited with, or on behalf of, The Depository Trust Company, New York, New York, known as DTC, or another depositary named by
us and identified in a prospectus supplement with respect to that series. See “Legal Ownership of Securities” for
a further description of the terms relating to any book-entry securities.
At
the option of the holder, subject to the terms of the indentures and the limitations applicable to global securities described
in the applicable prospectus supplement, the holder of the debt securities of any series can exchange the debt securities for
other debt securities of the same series, in any authorized denomination and of like tenor and aggregate principal amount.
Subject
to the terms of the indentures and the limitations applicable to global securities set forth in the applicable prospectus supplement,
holders of the debt securities may present the debt securities for exchange or for registration of transfer, duly endorsed or
with the form of transfer endorsed thereon duly executed if so required by us or the security registrar, at the office of the
security registrar or at the office of any transfer agent designated by us for this purpose. Unless otherwise provided in
the debt securities that the holder presents for transfer or exchange, we will make no service charge for any registration of
transfer or exchange, but we may require payment of any taxes or other governmental charges.
We
will name in a board resolution the security registrar, and any transfer agent in addition to the security registrar, that we
initially designate for any debt securities. We may at any time designate additional transfer agents or rescind the designation
of any transfer agent or approve a change in the office through which any transfer agent acts, except that we will be required
to maintain a transfer agent in each place of payment for the debt securities of each series.
If
we elect to redeem the debt securities of any series, we will not be required to:
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●
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issue,
register the transfer of, or exchange any debt securities of any series being redeemed in part during a period beginning at
the opening of business 15 days before the day of mailing of a notice of redemption of any debt securities that may be selected
for redemption and ending at the close of business on the day of the mailing; or
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●
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register
the transfer of or exchange any debt securities so selected for redemption, in whole or in part, except the unredeemed portion
of any debt securities we are redeeming in part.
|
Information
Concerning the Debenture Trustee
The
debenture trustee, other than during the occurrence and continuance of an event of default under an indenture, undertakes to perform
only those duties as are specifically set forth in the applicable indenture. Upon an event of default under an indenture, the
debenture trustee must use the same degree of care as a prudent person would exercise or use in the conduct of his or her own
affairs. Subject to this provision, the debenture trustee is under no obligation to exercise any of the powers given it by the
indentures at the request of any holder of debt securities unless it is offered reasonable security and indemnity against the
costs, expenses and liabilities that it might incur.
Payment
and Paying Agents
Unless
we otherwise indicate in the applicable prospectus supplement, we will make payment of the interest on any debt securities on
any interest payment date to the person in whose name the debt securities, or one or more predecessor securities, are registered
at the close of business on the regular record date for the interest.
We
will name in the applicable board resolution any other paying agents that we initially designate for the debt securities of a
particular series. We will maintain a paying agent in each place of payment for the debt securities of a particular series.
All
money we pay to a paying agent or the debenture trustee for the payment of the principal of or any premium or interest on any
debt securities that remains unclaimed at the end of two years after such principal, premium or interest has become due and payable
will be repaid to us, and the holder of the debt security thereafter may look only to us for payment thereof.
Governing
Law
The
indentures and the debt securities will be governed by and construed in accordance with the laws of the State of New York, except
to the extent that the Trust Indenture Act of 1939 is applicable.
Subordination
of Subordinated Debt Securities
The
subordinated debt securities will be subordinate and junior in priority of payment to certain of our other indebtedness to the
extent described in a prospectus supplement. The indentures in the forms initially filed as exhibits to the Registration
Statement of which this prospectus is a part do not limit the amount of indebtedness that we may incur, including senior indebtedness
or subordinated indebtedness, and do not limit us from issuing any other debt, including secured debt or unsecured debt.
Units
We
may issue units comprised of one or more of the other securities described in this prospectus or in any prospectus supplement
in any combination. Each unit will be issued so that the holder of the unit is also the holder, with the rights and obligations
of a holder, of each security included in the unit. The unit agreement under which a unit is issued may provide that the securities
included in the unit may not be held or transferred separately, at any time or at any time before a specified date or upon the
occurrence of a specified event or occurrence.
The
applicable prospectus supplement will describe:
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●
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the
designation and terms of the units and of the securities comprising the units, including
whether and under what circumstances those securities may be held or transferred separately;
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●
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any
unit agreement under which the units will be issued;
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any
provisions for the issuance, payment, settlement, transfer or exchange of the units or
of the securities comprising the units; and
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●
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whether
the units will be issued in fully registered or global form.
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PLAN
OF DISTRIBUTION
We
may sell the securities being offered pursuant to this prospectus to or through underwriters, through dealers, through agents,
or directly to one or more purchasers or through a combination of these methods. The applicable prospectus supplement will describe
the terms of the offering of the securities, including:
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●
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the
name or names of any underwriters, if, and if required, any dealers or agents;
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●
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the
purchase price of the securities and the proceeds we will receive from the sale;
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any
underwriting discounts and other items constituting underwriters’ compensation;
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any
discounts or concessions allowed or reallowed or paid to dealers; and
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any
securities exchange or market on which the securities may be listed or traded.
|
We
may distribute the securities from time to time in one or more transactions at:
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●
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a
fixed price or prices, which may be changed;
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●
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market
prices prevailing at the time of sale;
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●
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prices
related to such prevailing market prices; or
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●
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negotiated
prices.
|
Only
underwriters named in the prospectus supplement are underwriters of the securities offered by the prospectus supplement.
If
underwriters are used in an offering, we will execute an underwriting agreement with such underwriters and will specify the name
of each underwriter and the terms of the transaction (including any underwriting discounts and other terms constituting compensation
of the underwriters and any dealers) in a prospectus supplement. The securities may be offered to the public either through underwriting
syndicates represented by managing underwriters or directly by one or more investment banking firms or others, as designated.
If an underwriting syndicate is used, the managing underwriter(s) will be specified on the cover of the prospectus supplement.
If underwriters are used in the sale, the offered securities will be acquired by the underwriters for their own accounts and may
be resold from time to time in one or more transactions, including negotiated transactions, at a fixed public offering price or
at varying prices determined at the time of sale. Any public offering price and any discounts or concessions allowed or reallowed
or paid to dealers may be changed from time to time. Unless otherwise set forth in the prospectus supplement, the obligations
of the underwriters to purchase the offered securities will be subject to conditions precedent, and the underwriters will be obligated
to purchase all of the offered securities, if any are purchased.
We
may grant to the underwriters options to purchase additional securities to cover over-allotments, if any, at the public offering
price, with additional underwriting commissions or discounts, as may be set forth in a related prospectus supplement. The terms
of any over-allotment option will be set forth in the prospectus supplement for those securities.
If
we use a dealer in the sale of the securities being offered pursuant to this prospectus or any prospectus supplement, we will
sell the securities to the dealer, as principal. The dealer may then resell the securities to the public at varying prices to
be determined by the dealer at the time of resale. The names of the dealers and the terms of the transaction will be specified
in a prospectus supplement.
We
may sell the securities directly or through agents we designate from time to time. We will name any agent involved in the offering
and sale of securities and we will describe any commissions we pay the agent in the prospectus supplement. Unless the prospectus
supplement states otherwise, any agent will act on a best-efforts basis for the period of its appointment.
We
may authorize agents or underwriters to solicit offers by institutional investors to purchase securities from us at the public
offering price set forth in the prospectus supplement pursuant to delayed delivery contracts providing for payment and delivery
on a specified date in the future. We will describe the conditions to these contracts and the commissions payable for solicitation
of these contracts in the prospectus supplement.
In
connection with the sale of the securities, underwriters, dealers or agents may receive compensation from us or from purchasers
of the securities for whom they act as agents, in the form of discounts, concessions or commissions. Underwriters may sell the
securities to or through dealers, and those dealers may receive compensation in the form of discounts, concessions or commissions
from the underwriters or commissions from the purchasers for whom they may act as agents. Underwriters, dealers and agents that
participate in the distribution of the securities, and any institutional investors or others that purchase securities directly
for the purpose of resale or distribution, may be deemed to be underwriters, and any discounts or commissions received by them
from us and any profit on the resale of the common stock by them may be deemed to be underwriting discounts and commissions under
the Securities Act.
We
may provide agents, underwriters and other purchasers with indemnification against particular civil liabilities, including liabilities
under the Securities Act, or contribution with respect to payments that the agents, underwriters or other purchasers may make
with respect to such liabilities. Agents and underwriters may engage in transactions with, or perform services for, us in the
ordinary course of business.
To
facilitate the public offering of a series of securities, persons participating in the offering may engage in transactions that
stabilize, maintain, or otherwise affect the market price of the securities. This may include over-allotments or short sales of
the securities, which involves the sale by persons participating in the offering of more securities than have been sold to them
by us. In exercising the over-allotment option granted to those persons. In addition, those persons may stabilize or maintain
the price of the securities by bidding for or purchasing securities in the open market or by imposing penalty bids, whereby selling
concessions allowed to underwriters or dealers participating in any such offering may be reclaimed if securities sold by them
are repurchased in connection with stabilization transactions. The effect of these transactions may be to stabilize or maintain
the market price of the securities at a level above that which might otherwise prevail in the open market. Such transactions,
if commenced, may be discontinued at any time. We make no representation or prediction as to the direction or magnitude of any
effect that the transactions described above, if implemented, may have on the price of our securities.
Unless
otherwise specified in the applicable prospectus supplement, any common stock sold pursuant to a prospectus supplement will be
eligible for listing on the NYSE American, subject to official notice of issuance. Any underwriters to whom securities are sold
by us for public offering and sale may make a market in the securities, but such underwriters will not be obligated to do so and
may discontinue any market making at any time without notice.
In
order to comply with the securities laws of some states, if applicable, the securities offered pursuant to this prospectus will
be sold in those states only through registered or licensed brokers or dealers. In addition, in some states securities may not
be sold unless they have been registered or qualified for sale in the applicable state or an exemption from the registration or
qualification requirement is available and complied with.
LEGAL
MATTERS
Certain
legal matters governed by the laws of the State of New York and of Nevada with respect to the validity of the offered securities
will be passed upon for us by Loeb & Loeb LLP, New York, New York.
EXPERTS
The consolidated financial statements
of AgEagle Aerial Systems Inc. (f/k/a EnerJex Resources, Inc.) and its subsidiaries as of December 31, 2017 and 2016 incorporated
in this prospectus by reference from the Company’s Annual Report on Form 10-K have been audited by RBSM LLP, an independent
registered public accounting firm, as stated in their report, which is incorporated herein by reference, and have been so incorporated
in reliance upon the report of such firm given upon their authority as experts in accounting and auditing. The financial statements
audited by RBSM, are the financial statements of EnerJex Resources. Inc., prior to the consummation of the Merger.
The financial statements
of Eagle Aerial Systems, Inc. (f/k/a AgEagle Aerial Systems, Inc.), as of December 31, 2017 and 2016 incorporated in this prospectus
by reference from the Company’s Current Report on Form 8-K, filed with the Commission on March 29, 2018, have been audited
by D. Brooks and Associates CPA's, P.A. (“D. Brooks”), an independent registered public accounting firm, as stated
in their report, which is incorporated herein by reference, and have been so incorporated in reliance upon the report of such
firm given upon their authority as experts in accounting and auditing. The financial statements audited by D. Brooks are the financial
statements of AgEagle Aerial Systems, Inc., prior to the consummation of the Merger.
WHERE
YOU CAN FIND ADDITIONAL INFORMATION ABOUT US
We
have filed a registration statement on Form S-3 with the SEC for the securities we are offering by this prospectus. This prospectus
does not include all of the information contained in the registration statement. You should refer to the registration statement
and its exhibits for additional information. We will provide to each person, including any beneficial owner, to whom a prospectus
is delivered, a copy of any or all of the information that has been incorporated by reference in the prospectus but not delivered
with the prospectus. We will provide this information upon oral or written request, free of charge. Any requests for this information
should be made by calling or sending a letter to the Secretary of the Company, c/o AgEagle Aerial SystemsInc., at our office located
at 117 S. 4
th
Street, Neodesha, Kansas 66757. Our telephone number is (620) 325-6363.
We
are required to file annual and quarterly reports, current reports, proxy statements, and other information with the SEC. We make
these documents publicly available, free of charge, on our website at www.bioaobo.com as soon as reasonably practicable after
filing such documents with the SEC. You can read our SEC filings, including the registration statement, on the SEC’s website
at http://www.sec.gov. You also may read and copy any document we file with the SEC at its public reference facility at:
Public
Reference Room
100 F Street N.E.
Washington, DC 20549.
Please
call the SEC at 1-800-732-0330 for further information on the operation of the public reference facilities.
INCORPORATION
OF CERTAIN DOCUMENTS BY REFERENCE
The
following documents filed by us with the Securities and Exchange Commission are incorporated by reference in this prospectus:
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Annual
Report on Form 10-K for the fiscal year ended December 31, 2017;
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Quarterly Report on From 10-Q for the quarter ended March 31,
2018;
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●
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Current
Reports on Form 8-K filed on February 6, 2018, February 20, 2018, March 2, 2018, March
21, 2018, March 27, 2018, March 29, 2018 and April 13, 2018, and a Current Report
on Form 8-K/A filed on March 29, 2018; and
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●
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The
description of our common stock contained in our Registration Statement on Form 8-A filed
on June 12, 2014, including any amendments or reports filed for the purpose of updating
the description.
|
All
documents subsequently filed with the Securities and Exchange Commission by us pursuant to Sections 13(a), 13(c), 14 and 15(d)
of the Exchange Act, after the date of the filing of this registration statement (other than current reports or portions thereof
furnished under Items 2.02 or 7.01 of Form 8-K), prior to the termination of this offering, shall be deemed to be incorporated
by reference herein and to be part of this prospectus from the respective dates of filing of such documents. Any statement contained
herein or in a document incorporated or deemed to be incorporated by reference herein shall be deemed to be modified or superseded
for purposes hereof or of the related prospectus supplement to the extent that a statement in any other subsequently filed document
which is also incorporated or deemed to be incorporated herein modifies or supersedes such statement. Any such statement so modified
or superseded shall not be deemed, except as so modified or superseded, to constitute a part of this prospectus.
$10,000,000
AGEAGLE
AERIAL SYSTEMS INC.
Common
Stock
Preferred
Stock
Debt
Securities
Warrants
Units
PROSPECTUS
,
2018
We
have not authorized any dealer, salesperson or other person to give any information or represent anything not contained in or
incorporated by reference into this prospectus. You must not rely on any unauthorized information. If anyone provides you with
different or inconsistent information, you should not rely on it. This prospectus does not offer to sell any shares in any jurisdiction
where it is unlawful. Neither the delivery of this prospectus, nor any sale made hereunder, shall create any implication that
the information in this prospectus is correct after the date hereof.
[ALTERNATE
PAGE]
THE
INFORMATION IN THIS PROSPECTUS IS NOT COMPLETE AND MAY BE CHANGED. WE MAY NOT SELL THESE SECURITIES UNTIL THE REGISTRATION STATEMENT
FILED WITH THE SECURITIES AND EXCHANGE COMMISSION IS EFFECTIVE. THIS PROSPECTUS IS NOT AN OFFER TO SELL THESE SECURITIES AND IS
NOT SOLICITING AN OFFER TO BUY THESE SECURITIES IN ANY JURISDICTION WHERE THE OFFER OR SALE IS NOT PERMITTED.
|
Preliminary
Prospectus
|
Subject
to Completion, Dated May 25, 2018
|
AGEAGLE
AERIAL SYSTEMS INC.
4,282,480
Shares of Common Stock
This
prospectus relates to the resale of up to 4,282,480 shares of our common stock, par value $.0001 per share of AgEagle Aerial
Systems Inc., a Nevada corporation, which includes 4,222,480 shares issuable upon conversion of the outstanding shares
of our Series C Convertible Preferred Stock. The shares of common stock may be sold from time to time by the selling stockholders
named in this prospectus on page [___] (“Selling Stockholders”).
We
will not receive any proceeds from the sale of the shares by the Selling Stockholders. See “Use of Proceeds” on page
7. We have agreed to pay the expenses in connection with the registration of these shares.
Our
common stock is listed on the NYSE American under the symbol “UAVS.” The last reported sale price of our common stock
on May 23, 2018 was $2.52.
THIS
INVESTMENT INVOLVES A HIGH DEGREE OF RISK. YOU SHOULD PURCHASE SHARES ONLY IF YOU CAN AFFORD A COMPLETE LOSS OF YOUR INVESTMENT.
SEE “RISK FACTORS” BEGINNING ON PAGE 5 FOR A DISCUSSION OF RISKS APPLICABLE TO US AND AN INVESTMENT IN OUR
COMMON STOCK.
NEITHER
THE SECURITIES AND EXCHANGE COMMISSION NOR ANY STATE SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED THESE SECURITIES, OR DETERMINED
IF THIS PROSPECTUS IS TRUTHFUL OR COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
The
date of this prospectus is , 2018
[ALTERNATE
PAGE]
The
Offering
This
prospectus relates to the sale by the Selling Stockholders of up to 4,282,480 shares of our common stock.
|
Common stock offered by Selling Stockholders
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|
4,282,480
shares
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|
NYSE American Symbol
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UAVS
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|
Risk Factors
|
|
See
“Risk Factors” beginning on page 5 and other information included in this prospectus for a discussion of factors
you should consider before deciding to invest in shares of our common stock.
|
[ALTERNATE
PAGE]
USE
OF PROCEEDS
We
will not receive any portion of the net proceeds by the Selling Stockholders from the sale of its shares of common stock.
[ALTERNATE
PAGE]
SELLING
STOCKHOLDERS
We
are registering shares of common stock beneficially owned by the Selling Stockholders listed below to be sold under this prospectus.
The
following table sets forth the name of the Selling Stockholders, the number of shares of common stock owned by the Selling Stockholders
immediately prior to the date of this prospectus and the number of shares to be offered by the Selling Stockholders pursuant to
this prospectus. Percentage of beneficial ownership before this offering is based on 10,264,566 shares of our common stock
outstanding as of May 23, 2018. Beneficial ownership is based on information furnished by the Selling Stockholders.
None
of the Selling Stockholders are a broker dealer or an affiliate of a broker dealer. The Selling Stockholders may offer for
sale all or part of the shares from time to time. The table below assumes that the Selling Stockholders will sell all of the
shares offered for sale. The Selling Stockholders are under no obligation, however, to sell any shares pursuant to this
prospectus.
On
November 21, 2017, Alpha Capital Anstalt signed a binding commitment letter with us to provide prior to or at the closing of the
Merger a minimum of $4 million in new equity capital. The private placement was consummated on March 26, 2018. In connection with
the private placement, weissued 4,626 shares of our Series C Convertible Preferred Stock, convertible into 3,020,797 shares of
our common stock. The number of shares of Series C Convertible Preferred Stock issued in the private placement also includes shares
of Series C Convertible Preferred Stock issued as a funding commitment equal to 2.5% of the outstanding shares of our common stock
on a fully diluted basis.
On
March 26, 2018, we issued to Alpha Capital Anstalt 1,590 shares of our Series C Convertible Preferred Stockin connection with
the Merger. These sharesof our Series C Convertible Preferred Stockare convertible into 1,038,418 shares of our common stock.
On
May 11, 2018, we issued an additional 250 shares of our Series C Convertible Preferred Stock, convertible into 163,265
shares of our common stock. The Series C Convertible Preferred Stock includes a beneficial ownership limitation preventing conversion
of shares of Series C Convertible Preferred Stock into more than 9.99% of the number of shares of our common stock outstanding
immediately after giving effect to the issuance of shares of common stock upon conversion of the Series C Convertible Preferred
Stock.
We issued 60,000 shares of our
common stock to Integra Consulting Group, LLC (“Integra”), as compensation for services to be rendered pursuant
to an Investor Relations Agreement, dated April 4, 2018. Integra transferred 12,000 of those shares to Anthony D. Altavilla,
Senior Vice President of Integra.
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Beneficial Ownership
Before Offering
(1)
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Beneficial Ownership
After Offering
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Selling Stockholder
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Number
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Percentage
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Number
of Shares Offered
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Number
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Percentage
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Alpha Capital Anstalt (2)
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4,668,861
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9.9
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%
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4,222,480
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446,381
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2.8
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%
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Integra Consulting Group, LLC (3)
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48,000
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*
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48,000
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0
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0
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%
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Anthony D. Altavilla (4)
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12,000
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*
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12,000
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0
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0
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%
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*Less than one percent
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(1)
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Beneficial
ownership and percentage ownership are determined in accordance with the rules of the Securities and Exchange Commission.
In calculating the number of shares beneficially owned and the percentage ownership of a Selling Stockholder, shares underlying
options held by the Selling Stockholders that are either currently exercisable or exercisable within 60 days from May 23,
2018 are deemed outstanding. These shares, however, are not deemed outstanding for the purpose of computing the percentage
ownership of any other Selling Stockholders.
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(2)
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Alpha
Capital Anstalt holds 6,872 shares of Series C Convertible Preferred Stock which are currently convertible into an
aggregate of 4,222,480 shares of our common stock. Under the terms of the Series C Preferred Certificate of
Designation, the holder thereof may not own in excess of 9.9% of the Company’s common stock. The address for Alpha Capital
Anstalt is Pradafant 7, Furstentums 9490, Vaduz, Liechtenstein. Konrad Ackermann holds voting and dispositive power over
such shares.
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(3)
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The address for Integra Consulting Group, LLC is 1170 Burnett Ave., Suite M, Concord, CA 94520. Jeremy Roe,
as Managing Partner of Integra, holds voting and dispositive power over such shares..
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(4)
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Mr. Altavilla is a Senior
Vice President of Integra Consulting Group, LLC. The address for Mr. Altavilla is10417
Windmere Blvd., Carmel. IN 46032.
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[ALTERNATE
PAGE]
PLAN
OF DISTRIBUTION
The
Selling Stockholders and any of their pledgees, donees, assignees and successors-in-interest may, from time to time, sell any
or all of their shares of common stock being offered under this prospectus on any stock exchange, market or trading facility on
which shares of our common stock are traded or in private transactions. These sales may be at fixed or negotiated prices. The
Selling Stockholders may use any one or more of the following methods when disposing of the shares:
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ordinary
brokerage transactions and transactions in which the broker-dealer solicits purchasers;
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●
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block
trades in which the broker-dealer will attempt to sell the shares as agent but may position
and resell a portion of the block as principal to facilitate the transaction;
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●
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purchases
by a broker-dealer as principal and resales by the broker-dealer for its account;
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an
exchange distribution in accordance with the rules of the applicable exchange;
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privately
negotiated transactions;
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to
cover short sales made after the date that the registration statement of which this prospectus
is a part is declared effective by the SEC;
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●
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broker-dealers
may agree with the Selling Stockholders to sell a specified number of such shares at
a stipulated price per share;
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●
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to
or through underwriters;
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●
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a
combination of any of these methods of sale; and
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|
|
●
|
any
other method permitted pursuant to applicable law.
|
The
shares may also be sold under Rule 144 under the Securities Act of 1933, as amended, if available for a Selling Stockholder, rather
than under this prospectus. The Selling Stockholders have the sole and absolute discretion not to accept any purchase offer or
make any sale of shares if they deem the purchase price to be unsatisfactory at any particular time.
The
Selling Stockholders may pledge their shares to its brokers under the margin provisions of customer agreements. If a Selling Stockholder
defaults on a margin loan, the broker may, from time to time, offer and sell the pledged shares.
Broker-dealers
engaged by the Selling Stockholders may arrange for other broker-dealers to participate in sales. Broker-dealers may receive commissions
or discounts from the Selling Stockholders (or, if any broker-dealer acts as agent for the purchaser of shares, from the purchaser)
in amounts to be negotiated, which commissions as to a particular broker or dealer may be in excess of customary commissions to
the extent permitted by applicable law.
If
sales of shares offered under this prospectus are made to or through underwriters and broker-dealers as principals, we would be
required to file a post-effective amendment to the registration statement of which this prospectus is a part. In the post-effective
amendment, we would be required to disclose the names of any participating unerwriters broker-dealers and the compensation arrangements
relating to such sales.
The
Selling Stockholders and any broker-dealers or agents that are involved in selling the shares offered under this prospectus may
be deemed to be “underwriters” within the meaning of the Securities Act in connection with these sales. Commissions
received by these broker-dealers or agents and any profit on the resale of the shares purchased by them may be deemed to be underwriting
commissions or discounts under the Securities Act. Any broker-dealers or agents that are deemed to be underwriters may not sell
shares offered under this prospectus unless and until we set forth the names of the underwriters and the material details of their
underwriting arrangements in a supplement to this prospectus or, if required, in a replacement prospectus included in a post-effective
amendment to the registration statement of which this prospectus is a part.
The
Selling Stockholders and any other persons participating in the sale or distribution of the shares offered under this prospectus
will be subject to applicable provisions of the Exchange Act, and the rules and regulations under that act, including Regulation
M. These provisions may restrict activities of, and limit the timing of purchases and sales of any of the shares by, the Selling
Stockholders or any other person. Furthermore, under Regulation M, persons engaged in a distribution of securities are prohibited
from simultaneously engaging in market making and other activities with respect to those securities for a specified period of
time prior to the commencement of such distributions, subject to specified exceptions or exemptions. All of these limitations
may affect the marketability of the shares.
If
any of the shares offered for sale pursuant to this prospectus are transferred other than pursuant to a sale under this prospectus,
then subsequent holders could not use this prospectus until a post-effective amendment or prospectus supplement is filed, naming
such holders. We offer no assurance as to whether any of the Selling Stockholders will sell all or any portion of the shares offered
under this prospectus.
We
have agreed to pay all fees and expenses we incur incident to the registration of the shares being offered under this prospectus.
However, the Selling Stockholders and purchaser is responsible for paying any discounts, commissions and similar selling expenses
it incurs.
We
and the Selling Stockholders have agreed to indemnify one another against certain losses, damages and liabilities arising in connection
with this prospectus, including liabilities under the Securities Act.
[ALTERNATE
PAGE]
4,282,480
Shares
Common
Stock
AGEAGLE
AERIAL SYSTEMS INC.
PROSPECTUS
,
2018
You
should rely only on the information contained in this prospectus. We have not authorized anyone to provide you with information
different from that contained in this prospectus or any prospectus supplement. This prospectus is not an offer of these securities
in any jurisdiction where an offer and sale is not permitted. The information contained in this prospectus is accurate only as
of the date of this prospectus, regardless of the time of delivery of this prospectus or any sale of our common stock.
PART
II
INFORMATION
NOT REQUIRED IN PROSPECTUS
Item
14. Other Expenses of Issuance and Distribution.
The
following table sets forth an estimate of the fees and expenses relating to the issuance and distribution of the securities being
registered hereby, other than underwriting discounts and commissions, all of which shall be borne by AgEagle Aerial Systems Inc.
All of such fees and expenses, except for the SEC Registration Fee, are estimated:
|
SEC Registration Fee
|
|
$
|
2,689.89
|
|
|
Transfer agent’s fees and expenses
|
|
|
|
*
|
|
Printing and engraving expenses
|
|
|
|
*
|
|
Accounting fees and expenses
|
|
|
|
*
|
|
Legal fees and expenses (including blue sky services and expenses)
|
|
|
|
*
|
|
Miscellaneous
|
|
|
|
*
|
|
Total
|
|
$
|
|
*
|
*
Estimated
Item
15. Indemnification of Officers and Directors
Section
78.7502(1) of the Nevada Revised Statutes (“NRS”) provides that a corporation may indemnify any person who was or
is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil,
criminal, administrative or investigative (except an action by or in the right of the corporation) by reason of the fact that
such person is or was a director, officer, employee or agent of the corporation, or is or was serving at the request of the corporation
as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, against
expenses (including attorneys’ fees), judgments, fines and amounts paid in settlement actually and reasonably incurred in
connection with such action, suit or proceeding if such person: (i) is not liable for a breach of fiduciary duties that involved
intentional misconduct, fraud or a knowing violation of law; or (ii) acted in good faith and in a manner which he or she reasonably
believed to be in or not opposed to the best interests of the corporation, and, with respect to any criminal action or proceeding,
had no reasonable cause to believe his or her conduct was unlawful.
Section
78.7502(2) of the NRS further provides that a corporation may indemnify any person who was or is a party or is threatened to be
made a party to any threatened, pending or completed action or suit by or in the right of the corporation to procure a judgment
in its favor by reason of the fact that such person is or was a director, officer, employee or agent of the corporation, or is
or was serving at the request of the corporation as a director, officer, employee or agent of another corporation, partnership,
joint venture, trust or other enterprise, against expenses (including amounts paid in settlement and attorneys’ fees) actually
and reasonably incurred in connection with the defense or settlement of the action or suit if such person: (i) is not liable for
a breach of fiduciary duties that involved intentional misconduct, fraud or a knowing violation of law; or (ii) acted in good
faith and in a manner that he or she reasonably believed to be in or not opposed to the best interests of the corporation. Indemnification
may not be made for any claim, issue or matter as to which such a person has been adjudged by a court of competent jurisdiction,
after exhaustion of all appeals therefrom, to be liable to the corporation or for amounts paid in settlement to the corporation,
unless and only to the extent that the court in which the action or suit was brought or other court of competent jurisdiction
determines upon application that in view of all the circumstances of the case, the person is fairly and reasonably entitled to
indemnity for such expenses as the court deems proper.
To
the extent that a director, officer, employee or agent of a corporation has been successful on the merits or otherwise in defense
of any action, suit or proceeding referred to in subsections (1) and (2) of Section 78.7502, as described above, or in defense
of any claim, issue or matter therein, the corporation shall indemnify him or her against expenses (including attorneys’
fees) actually and reasonably incurred by such person in connection with the defense.
Unless
ordered by a court or advanced pursuant to Section 78.751(2), Section 78.751(1) of the NRS limits indemnification under Section
78.7502 to situations in which either (1) the shareholders, (2) the majority of a disinterested quorum of directors, or (3) independent
legal counsel determine that indemnification is proper under the circumstances.
Section
78.751(2) authorizes a corporation’s articles of incorporation, bylaws or agreement to provide that directors’ and
officers’ expenses incurred in defending a civil or criminal action must be paid by the corporation as incurred, rather
than upon final disposition of the action, upon receipt by the director or officer to repay the amount if a court ultimately determines
that he is not entitled to indemnification.
Section
78.751(3)(a) provides that the rights to indemnification and advancement of expenses shall not be deemed exclusive of any other
rights under any bylaw, agreement, shareholder vote or vote of disinterested directors. Section 78.751(3) (b) extends the rights
to indemnification and advancement of expenses to former directors, officers, employees and agents, as well as their heirs, executors,
and administrators.
Item
16. Exhibits
|
Exhibit
Number
|
|
Description of Document
|
|
|
|
|
|
1.1*
|
|
Form of underwriting agreement with respect to common stock, preferred stock or warrants.
|
|
4.1*
|
|
Form of specimen common stock certificate, if any.
|
|
4.2*
|
|
Form of any warrant agreement with respect to each particular series of warrants issued hereunder.
|
|
4.3*
|
|
Form of specimen certificate for preferred stock of registrant, if any.
|
|
4.4*
|
|
Certificate of designation for preferred stock, if any.
|
|
4.5*
|
|
Form of warrant agreement and warrant certificate, if any.
|
|
4.6*
|
|
Form of unit agreement and unit certificate, if any.
|
|
4.7**
|
|
Form of indenture with respect to senior debt securities, to be entered into between registrant and a trustee acceptable to the registrant, if any.
|
|
4.8**
|
|
Form of indenture with respect to subordinated debt securities, to be entered into between registrant and a trustee acceptable to the registrant, if any.
|
|
4.9*
|
|
Form of debt securities, if any.
|
|
5.1**
|
|
Opinion of Loeb & Loeb LLP as to the legality of certain securities being registered.
|
|
23.1
|
|
Consent of RBSM, LLP, an independent registered public accounting firm.
|
|
23.2
|
|
Consent of D. Brooks and Associates CPA’s, P.A., an independent registered public accounting firm.
|
|
23.2**
|
|
Consent of Loeb & Loeb LLP, with respect to certain securities being registered (included in Exhibit 5.1).
|
|
24.1
|
|
Power of Attorney (included on signature pages to the registration statement).
|
|
25.1***
|
|
Statement of Eligibility on Form T-1 under the Trust Indenture Act of 1939, as amended, of a trustee acceptable to the registrant, as trustee under the Indenture.
|
|
*
|
To be filed, if necessary, subsequent
to the effectiveness of this registration by an amendment to this registration statement or incorporation by reference pursuant
to a Current Report on Form 8-K in connection with an offering of securities.
|
|
|
|
|
**
|
To be filed by amendment.
|
|
|
|
|
***
|
To
the extent applicable, to be filed under Form 305B2.
|
Item
17. Undertakings.
(a) The undersigned registrant hereby undertakes:
(1)
To file, during any period in which offers or sales are being made, a post-effective amendment to this registration
statement:
(i)
To include any prospectus required by Section 10(a)(3) of the Securities Act of 1933;
(ii)
To reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent
post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set
forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if
the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high
end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule
424(b) if, in the aggregate, the changes in volume and price represent no more than 20 percent change in the maximum aggregate
offering price set forth in the “Calculation of Registration Fee” table in the effective registration statement;
(iii)
To include any material information with respect to the plan of distribution not previously disclosed in the
registration statement or any material change to such information in the registration statement. Provided, however, that the
undertakings set forth in paragraphs (a)(1)(i), (a)(1)(ii) and (a)(1)(iii) above do not apply if the registration statement
is on Form S-3 or Form F-3 and the information required to be included in a post-effective amendment by those paragraphs is
contained in reports filed with or furnished to the Commission by the registrant pursuant to Section 13 or Section 15(d) of
the Securities Exchange Act that are incorporated by reference in the registration statements or is contained in a form of
prospectus filed pursuant to Rule 424(b) that is a part of the registration statement
(2)
That, for the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment shall
deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that
time shall be deemed to be the initial bona fide offering thereof.
(3)
To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold
at the termination of the offering.
(b)
The undersigned registrant hereby undertakes that, for purposes of determining any liability under the Securities Act
of 1933, as amended, each filing of the registrant’s annual report pursuant to Section 13(a) or Section 15(d) of the
Securities Exchange Act that is incorporated by reference in this registration statement shall be deemed to be a new
registration statement relating to the securities offered therein, and the offering of such securities at that time shall be
deemed to be the initial bona fide offering thereof.
(c)
That, for the purpose of determining liability under the Securities Act of 1933 to any purchaser:
(1)
Each prospectus filed by the registrant pursuant to Rule 424(b)(3) shall be deemed to be part of the registration statement as
of the date the filed prospectus was deemed part of and included in the registration statement; and
(2)
Each prospectus required to be filed pursuant to Rule 424(b)(2), (b)(5), or (b)(7) as part of a registration statement in reliance
on Rule 430B relating to an offering made pursuant to Rule 415(a)(1)(i), (vii), or (x) for the purpose of providing the information
required by section 10(a) of the Securities Act of 1933 shall be deemed to be part of and included in the registration statement
as of the earlier of the date such form of prospectus is first used after effectiveness or the date of the first contract of sale
of securities in the offering described in the prospectus. As provided in Rule 430B, for liability purposes of the issuer and
any person that is at that date an underwriter, such date shall be deemed to be a new effective date of the registration statement
relating to the securities in the registration statement to which that prospectus relates, and the offering of such securities
at that time shall be deemed to be the initial bona fide offering thereof. Provided, however, that no statement made in a registration
statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by
reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with
a time of contract of sale prior to such effective date, supersede or modify any statement that was made in the registration statement
or prospectus that was part of the registration statement or made in any such document immediately prior to such effective date.
(d)
That, for the purpose of determining liability of the registrant under the Securities Act of 1933 to any purchaser in the initial
distribution of the securities, the undersigned registrant undertakes that in a primary offering of securities of the undersigned
registrant pursuant to this registration statement, regardless of the underwriting method used to sell the securities to the purchaser,
if the securities are offered or sold to such purchaser by means of any of the following communications, the undersigned registrant
will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser: (i) Any preliminary
prospectus or prospectus of the undersigned registrant relating to the offering required to be filed pursuant to Rule 424; (ii)
any free writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant or used or referred
to by the undersigned registrant; (iii) the portion of any other free writing prospectus relating to the offering containing material
information about the undersigned registrant or its securities provided by or on behalf of the undersigned registrant; and (iv)
any other communication that is an offer in the offering made by the undersigned registrant to the purchaser.
(e)
The undersigned registrant hereby undertakes that: (i) for purposes of determining any liability under the Securities
Act of 1933, the information omitted from the form of prospectus filed as part of the registration statement in reliance upon
Rule 430A and contained in the form of prospectus filed by the registrant pursuant to Rule 424(b)(1) or (4) or 497(h) under
the Securities Act shall of 1933 be deemed to be part of the registration statement as of the time it was declared effective;
and (ii) for the purpose of determining any liability under the Securities Act of 1933, each post-effective amendment that
contains a form of prospectus shall be deemed to be a new registration statement relating to the securities offered therein,
and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.
(f)
If and when applicable, the undersigned registrant, hereby undertakes to file an application for the purpose of determining the
eligibility of the trustee to act under subsection (a) of Section 310 of the Trust Indenture Act in accordance with the rules
and regulations prescribed by the Commission under Section 305(b)(2) of the Act.
(g)
Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and
controlling persons of the registrant pursuant to the foregoing provisions or otherwise, the registrant has been advised that
in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Securities
Act of 1933 and is therefore unenforceable. In the event that a claim for indemnification against such liabilities (other than
the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the
successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection
with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by
controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against
public policy as expressed in the Securities Act of 1933, and will be governed by the final adjudication of such issue.
SIGNATURES
Pursuant
to the requirements of the Securities Act of 1933, the registrant certifies that it has reasonable grounds to believe that it
meets the requirements for filing on Form S-3 and has duly caused this Registration Statement on Form S-3 to be signed on its
behalf by the undersigned, thereunto duly authorized, in the City of Neodesha, Kansas, on the 25th day of May, 2018.
|
|
AGEAGLE AERIAL SYSTEMS INC.
|
|
|
|
|
|
By:
|
/s/ Bret Chilcott
|
|
|
|
Name: Bret Chilcott
|
|
|
|
Title: Chief Executive Officer and President
|
POWER
OF ATTORNEY
KNOW
ALL BY THESE PRESENTS, that each person whose signature appears below constitutes and appoints each of Bret Chilcott and Nicole
Fernandez-McGovern, as his or her true and lawful attorney-in-fact and agent, with full power of substitution and resubstitution,
in any and all capacities, to sign any or all amendments (including post-effective amendments) to this registration statement,
and to file the same with all exhibits thereto, and other documents in connection therewith, with the Securities and Exchange
Commission, granting unto said attorney-in-fact and agent full power and authority to do and perform each and every act and thing
requisite and necessary to be done in and about the premises, as fully to all intents and purposes as he or she might or could
do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or their substitutes, may lawfully do
or cause to be done by virtue hereof.
Pursuant
to the requirements of the Securities Act of 1933, this registration statement has been signed by the following persons in the
capacities and on the dates indicated.
|
Name
|
|
Position
|
|
Date
|
|
|
|
|
|
|
|
/s/ Bret Chilcott
|
|
Chief Executive Officer (Principal Executive Officer),
|
|
May
25, 2018
|
|
Bret Chilcott
|
|
President and Director
|
|
|
|
|
|
|
|
|
|
/s/ Nicole Fernandez-McGovern
|
|
Chief Financial Officer (Principal Financial and
|
|
May
25, 2018
|
|
Nicole Fernandez-McGovern
|
|
Accounting Officer)
|
|
|
|
|
|
|
|
|
|
/s/ Grant Begley
|
|
Director
|
|
May
25, 2018
|
|
Grant Begley
|
|
|
|
|
|
|
|
|
|
|
|
/s/ Scott Burell
|
|
Director
|
|
May
25, 2018
|
|
Scott Burell
|
|
|
|
|
|
|
|
|
|
|
|
/s/ Thomas Gardner
|
|
Director
|
|
May
25, 2018
|
|
Thomas Gardner
|
|
|
|
|
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