Zix Corporation (NasdaqGS:ZIXI) signed a definitive agreement for private placement of 64,914 Series A convertible preferred stock at the price of $1,000 per stock for gross proceeds of $64,914,000 and 35,086 Series B convertible preferred stock at the price of $1,000 per stock for gross proceeds of $35,086,000 and for total proceeds of $100,000,000 on January 14, 2019. The transaction will include participation from new investor True Wind Capital. Series A convertible preferred stock will have an initial stated value of $1,000 per share, which stated value will accrete at an annual rate of 8%, compounded quarterly, and will vote together with the common stock on an as-converted basis. The accreted value of each share of Series A preferred convertible stock may be converted into common shares of company at a conversion rate of 166.11 shares of common stock per $1,000 of accreted value (equivalent to $6.02 per common share), subject to adjustment to take into account certain dilutive issuances, stock splits, stock dividends, or similar events. Series B convertible preferred stock, which will have a stated value of $1,000 per share, will be entitled to receive dividends each quarter, which accrue daily at an initial annual rate of 10% (which rate will increase by an additional 1% for each six-month period that elapses before shareholder approval is obtained, up to a maximum of 12%), and will be non-voting. The Series B convertible preferred stock will automatically convert into shares of Series A convertible preferred stock upon receipt of the requisite shareholder approval, which company expects to seek at its 2019 annual meeting of shareholders. The company has also agreed to grant customary registration and consent rights to investor. Investor’s Founding Partner James H. Greene, and Principal Brandon Van Buren will join company's board of directors, effective upon closing of the investment.