Item 1.01 Entry into a Material Definitive Agreement.
Securities Purchase Agreement
On
The sale of the Common Stock at a price of
The above description of the SPA does not purport to be complete and is qualified in its entirety by the full text of such SPA, which is incorporated herein and attached hereto as Exhibit 10.1.
Warrant
In connection with the SPA, the Company granted the Investor Warrants to
purchase up to 10,950,000 shares of Common Stock, representing one hundred
percent (100%) of the total number of shares of common stock sold under the SPA.
The Warrants will be exercisable beginning on the Initial Exercise Date, in
whole or in part, at an exercise price of
If after ninety (90) days after the Initial Exercise Date there is no effective registration statement registering, or no current prospectus is available for the resale of, the Warrant Shares, the Investor may exercise the Warrants by means of a "cashless exercise". Subject to limited exceptions, a holder of Warrants will not have the right to exercise any portion of its Warrants if such holder, together with its affiliates, would beneficially own in excess of 9.99% of the number of shares of Common Stock outstanding immediately after giving effect to such exercise. The Exercise Price and number of Warrant Shares issuable upon the exercise of the Warrants will be subject to adjustment in the event of any stock dividends, forward or reverse stock split, recapitalization, reorganization or similar transaction, as described in the Warrants.
The offering of the Warrants is exempt from registration under Section 4(a)(2) of the Securities Act of 1933, as amended (the "Securities Act").
The above description of the Warrants does not purport to be complete and is qualified in its entirety by the full text of the "form of" Warrant which is attached hereto as Exhibit 10.2, and incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits. Exhibit No. Description 5.1 Opinion of Legal Counsel 10.1 Form of Securities Purchase Agreement 10.2 Form of Warrant 23.1 Consent of Legal Counsel (contained in Exhibit 5.1).
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