Item 1.01 Entry into a Material Definitive Agreement.
Odyssey Capital Financing
On
Pursuant to the Odyssey Note, during the first six months after issuance,
Odyssey may convert all or a portion of the outstanding principal of the Odyssey
Note into shares of Common Stock of the Company at a fixed price equal to
If the Company prepays the Odyssey Note within 60 days of its issuance, the Company must pay all of the principal at a cash redemption premium of 120%; if such prepayment is made between the 61st day and the 120th day after the issuance of the Odyssey Note, then such redemption premium is 130%; if such prepayment is made from the 121st to the 180th day after issuance, then such redemption premium is 140%. After the 180th day following the issuance of the Odyssey Note, there shall be no further right of prepayment.
In the event all or substantially all of the assets or equity of the Company is acquired by a third party, Odyssey may elect to either (i) have the Odyssey Note redeemed by the Company in cash at a premium of 150% of the principal amount of the Odyssey Note, plus accrued but unpaid interest or (ii) convert the Odyssey Note into shares of Common Stock of the Company at the applicable conversion price.
In connection with the Odyssey Note, the Company agreed to cause its transfer agent to reserve 10,930,000 shares of Common Stock, in the event that the Odyssey Note is converted. Odyssey has the right to periodically request that the number of shares reserved be increased to at least 400% the number of shares of Common Stock issuable upon conversion of the Odyssey Note.
1
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an
Off-Balance Sheet Arrangement of a Registrant.
The information set forth under Item 1.01 above with respect to the Odyssey Note and the Odyssey SPA and the related agreements are incorporated herein by reference.
Item 3.02 Unregistered Sales of
The information set forth under Item 1.01 above with respect to the issuance of the Odyssey Note was made in reliance upon the exemption from the registration requirements of the Securities Act of 1933, as amended (the "Act"), pursuant to Section 4(a)(2) of the Act.
Item 8.01 Other Events.
As reported in the Company's current report on Form 8-K filed with the
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits Exhibit No. Description 4.1 Convertible Redeemable Promissory Note, issued toOdyssey Capital LLC , dated as ofDecember 4, 2019 . 10.1 Securities Purchase Agreement, dated as ofDecember 4, 2019 , by and betweenNanoFlex Power Corporation andOdyssey Capital LLC . 2
© Edgar Online, source