Unregistered Sales of Equity Securities and Use of Proceeds
−Removed: On June 15, 2020, the holder of a convertible promissory note in the principal amount of $3,150,000 agreed to an extension of the maturity date to June 15, 2023 in exchange for an increase in the interest rate on the note from 11% to 12%.
−Removed: In conjunction with this amendment, the Company issued to the holder of note five-year common stock purchase warrants to purchase a total of up to 1,250,000 shares of the Company common stock at an exercise price of $2.05 a share.
−Removed: The securities described above were issued in reliance upon the exemption from registration afforded by Section 4(2) of the Act for transactions not involving a public offering based upon the Company’s prior relationship with the single accredited investor note holder.
+Added: During the third quarter of 2020, we entered into a securities amendment agreement (the “Amendment”) with the holders of $9.2 million principal amount of outstanding Amended and Restated 10% Senior Secured Convertible Debentures (the “Debentures”).
+Added: The Agreement amended in certain respects the securities purchase agreement among the company, EMI and the holders of the Debentures originally entered into on September 8, 2018, as previously amended, and provided that the Debentures are to be amended in certain respects as set forth in the form of Allonge Amendment No.
+Added: 1 to the Debentures attached as Exhibit A to the Agreement (the “Allonge”).
+Added: In connection with the Amendment and the Allonge, we issued to the holders of the Debentures, pro rata based upon the relative principal amounts of their Debentures, five-year Common Stock Purchase Warrants to purchase up to 1,840,000 shares of Company common stock at an exercise price of $2.00 a share.
+Added: The issuance of the Warrants was made without registration under the Securities Act of 1933, as amended (the “Act”), in reliance upon the exemptions from registration afforded by Section 4(2) of the Act and Regulation D thereunder for transactions not involving a public offering as the Warrants were issued to a limited number of accredited investors.
Defaults Upon Senior Securities
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