Item 1.01 Entry into a Material Definitive Agreement
On January 2, 2015, Vuzix Corporation (the "Company"), entered into a Series A
Preferred Stock Purchase Agreement with Intel Corporation (the "Purchaser"),
whereby the Company sold an aggregate of 49,626 shares of the Company's Series A
Convertible Preferred Stock, par value $0.001 per share (the "Series A Preferred
Stock"), at an aggregate purchase price of $24,813,000. Each share of Series A
Preferred Stock was convertible, at the option of the Purchaser, into 100 shares
of the Company's common stock, par value $0.001 per share (the "Common Stock"),
at a conversion price of $5.00 per share. Each share of Series A Preferred Stock
was entitled to receive dividends at a rate of 6% per annum, compounded
quarterly and payable in cash or in kind, at the Company's sole discretion.
On January 28, 2021, the Purchaser converted all of its shares of Series A
Preferred Stock into 4,962,600 shares of Common Stock. The shares of Series A
Preferred were retired and cannot be reissued. On the same date, the Company and
the Purchaser entered into a Dividend Settlement Agreement pursuant to which the
Purchaser agreed to accept $10,000,000 in cash in full payment of all accrued
Series A Preferred Stock dividends in the approximate amount of $10,800,000.
Item 9.01 Financial Statements and Exhibits.
Exhibit No Exhibit
10.1 Dividend Settlement Agreement between Vuzix Corporation and Intel
Corporation, dated January 28, 2021
2
© Edgar Online, source Glimpses