Question: Does the Preferred Convertible Stock get force converted into Common Stock as soon as the share price hits $4.50?
Answer: The Preferred Convertible Stock (that is, only the Series A-2 and B) will be forced to convert into shares of common stock, if the daily volume weighted average price (VWAP) exceeds $4.50 for any 20 trading days during any 30 consecutive trading day period AND all the common stock underlying the Preferred Stock have been registered for resale (or may be sold without volume or manner of sale restrictions under Rule 144). The Company will provide each holder with notice within one trading day of meeting the requirements specifying the date three trading days later when the conversion will take effect.
Corrado De Gasperis
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