ITEM 8.01 Other Events
2050 Motors, Inc. has filed Certificates of Correction to its Amended Articles of Incorporation originally filed with the Secretary of State of California on April 18, 2018 and September 6, 2018 to reflect two classes of stock – Common Shares and Preferred Shares. Prior management had incorrectly created a Series A Preferred Class which resulted in the Company having three (3) classes of stock – Common Shares, Preferred Shares, and Series A Preferred Shares – which was ambiguous and confusing.
As a result of the corrections, 2050 has authorized shares as follows: three (3) billion Common Shares and ten (10) million Preferred Shares, of which there are three series – 1) three (3) million Series A (each converts into one common share and has fifty votes; 2) six (6) million Series B (each converts into 1,000 common shares and has 1,000 votes); and 3) one (1) million Series C (each converts into one common share and has 10,000 votes).
As of October 30, 2019, 2050 Motors has 1,803,560,305 Common Shares issued and outstanding, three (3) million Series A Preferred Shares issued and outstanding, five hundred twenty-five thousand (525,000) Series B Preferred Shares issued and outstanding, and one (1) million Series C Preferred Shares issued and outstanding. Each Series of Preferred Stock accrues a 1% annual dividend and has rights typically associated with preferred equity. Management intends to change the voting rights of the Series A Preferred stock so that each share has one (1) vote rather than fifty (50) votes in the near future to further streamline the share structure of the Company.
Item 9.01. Exhibits
(a) Exhibits. The following exhibit is filed with this Current Report on Form 8-K:
Exhibit No. Description
10.1 Certificate of Correction to the Amended Articles – April 18, 2018
10.2 Certificate of Correction to the Amended Articles – September 6, 2018
10.3 Series A Preferred Stock Certificate of Determination – April 15, 2019
10.4 Series B Preferred Stock Certificate of Determination – April 15, 2019
10.5 Series C Preferred Stock Certificate of Determination – March 20, 2019
