Item 3.02 Unregistered Sales of
On
We issued these shares of preferred stock pursuant to Section 4(2) of the Securities Act of 1933. We were able to rely upon this exemption since this issuance does not constitute a public offering of our shares.
In connection with this issuance,
Item 3.03 Material Modification to Rights of Security Holders.
On
1. Voting.
Each share of Series A Stock shall entitle the holder to 10,000 votes on all matters submitted to the shareholders of the Company's common stock. A holder of the Series A Stock shall vote together with the holders of Common Stock as a single class upon all matters submitted to the Common Stock shareholders.
2. Dividends.
The holders of Series A Stock of the Company shall not be entitled to receive dividends paid on the Company's Common Stock.
3. No Liquidation Preference.
Upon liquidation, dissolution and winding up of the Company, whether voluntary or involuntary, the holders of the Series A Stock then outstanding shall not be entitled to receive out of the assets of the Company, whether from capital or earnings available for distribution, any amounts which will be otherwise available to and distributed to the holder of Common Stock.
1 4. Conversion.
Series A Stock will not be convertible into the shares of the Company's Common Stock.
The purpose of the creation of the Series A Stock is to ensure the continuity of our management in pursuing our business plan in the midst of dilution following the conversion of convertible promissory notes held by third-party lenders.
Item 9.01 Financial Statements and Exhibits
Exhibit No. Description 99.1 Certificate of Designation 2
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