here you go readAs of 9:00 AM on September 21, 2015, the Company has 84,731,255 shares of authorized and unissued shares of common stock available for issuance pursuant to the Series C Warrants, which number of authorized and unissued shares of common stock is not sufficient to satisfy all exercises that may occur pursuant to the Series C Warrants (as calculated as of the date hereof). At such time as the Company no longer has sufficient authorized and unissued shares of common stock to settle the exercises of the Series C Warrants (the “Authorized Share Failure”), the Series C Warrants shall not be exercisable into shares of Common Stock unless and until the Company obtains the approval of its stockholders to either a reverse stock split to, and/or an increase in, the Company’s authorized shares of Common Stock (the “Stockholder Approval”).
Pursuant to the terms of the Series C Warrants, the Company is required to seek the Stockholder Approval by no later than the 90 th day after the date of such Authorized Share Failure (such 90-day period, the “Grace Period”) and to pay each holder consideration in accordance with the Series C Warrants.
On September 21, 2015, the Company entered into an amendment agreement (the “Warrant Amendment”) with the holders of more than 66.7% of the outstanding Series C Warrants to clarify the mechanical procedures and process with respect to the first Authorized Share Failure and the corresponding Grace Period, which were inadvertently omitted from the initial form of Series C Warrant.
Pursuant to the Amendment Agreement, upon the occurrence of the first Authorized Share Failure, the Company will provide written notice to each holder of Series C Warrants exercising a Series C Warrant on the first date that an Authorized Share Failure has occurred that the initial Grace Period has commenced and, as contemplated by the terms of the Series C Warrants, the Company has 90 days to obtain the Stockholder Approval. During such initial Grace Period, the Company will not be accepting any exercise notices with respect to the Series C Warrants and the holders of the Series C Warrants shall have no right to receive shares of Common Stock or cash payments with respect to exercises of the Series C Warrants during such Grace Period. Warrant exercise notices submitted on the first day in the Grace Period will be
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