Item 2. Unregistered Sales of Equity Securities
Item 2. Unregistered Sales of Equity
Securities and Use of Proceeds
On October 25, 2022, 1,400,000 shares of Series A Preferred Stock and 100,000
shares of Series B Preferred Stock (together, the Preferred Stock”) were issued to certain institutional investors in a private
placement. The Preferred Stock has an aggregate stated value of $15,000,000 and each share of the Preferred Stock has a purchase price
of $9.50. The Company and the holders of the Preferred Stock entered into a registration rights agreement to register the resale of the
shares of common stock issuable upon conversion of the Preferred Stock. The $14.3 million, representing a 5% original issue discount, in gross proceeds from the sale of the Preferred
Stock is being held in escrow and is expected to be used to fund the redemption of the Preferred Stock, which is expected to occur in
2022.
Item 3. Defaults Upon Senior Securities
None.
Item 4. Mine Safety Disclosures
None.
Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.