The newly authorized shares of Class A common stock would be issuable for any proper corporate purpose, including future acquisitions, investment opportunities, capital raising transactions of equity or convertible debt securities, stock splits, stock dividends, issuance under future equity compensation plans, employee stock or incentive and savings plans or for other corporate purposes. The shares may be issued by the Board in its discretion, subject to any further stockholder action required in the case of any particular issuance by applicable law, regulatory agency, or under the rules of any securities exchange.
The Board believes that the Company will need to raise additional capital in order to implement its business plan and is contemplating various alternatives to raise capital, including a potential private placement of shares of common stock or securities convertible into shares of common stock. Currently, we have no specific plans, arrangements or understandings, whether written or oral, with respect to the increase in shares available for issuance as a result of the Increased Capitalization Charter Amendment. In addition, there is no present agreement to issue any material amount of shares of Class A common stock, with the exception of the shares of Class A common stock issuable upon conversion of the warrants and Series B preferred stock issued or issuable pursuant to the securities purchase agreement dated as of October 5, 2018 and as amended on May 9, 2019, details of which may be found in the Company’s Current Reports on Form 8-K filed on October 9, 2018 and May 10, 2019.
