INNOVAQOR, INC. CREATES PREFERRED STOCK; CONSIDERS LAUNCHING EXCHANGE OFFER TO COMMON SHAREHOLDERS
November 27, 2023 09:00 ET
| Source: InnovaQor, Inc.
WEST PALM BEACH, Fla., Nov. 27, 2023 (GLOBE NEWSWIRE) -- InnovaQor, Inc. (OTC: INQR) authorized two new series of preferred stock, the Series E Mandatory Convertible Preferred Stock and the Series F Mandatory Convertible Preferred Stock, by filing certificates of designation with the Secretary of State of the State of Nevada on November 22, 2023. The Company authorized the two series of preferred stock in contemplation of a potential exchange offer to be made to its common shareholders.
The Company is considering offering common shareholders the opportunity to exchange common shares for a stated value of Series E and Series F Preferred Stock. The value of common shares exchanged would be divided equally between Series E and Series F Preferred Stock. The Series E Preferred Stock has a mandatory conversion date of December 31, 2026 and the Series F Preferred Stock has a mandatory conversion date of December 31, 2027. The stated value each series of preferred stock initially is $100, and increases by $20 upon each anniversary of issuance.
As an example, as currently contemplated, if a common shareholder exchanges $1,000 of common shares they will receive $500 of Series E Preferred Stock and $500 of Series F Preferred Stock.
The $500 of Series E Preferred Stock shall have a stated value of (i) $600 from the first anniversary of the original issue date until the day before the second anniversary of the Original Issue Date; and (ii) $700 from and after the second anniversary of the original issue date until the day before the third anniversary of the original issue date; and (iii) $800 on the third anniversary until the mandatory conversion date at which time the total stated value of the Series E Preferred Stock ($800.00) would automatically convert to common stock of the Company at the average closing price of the Common Stock on the 10 Trading Days immediately prior to the mandatory conversion date.
The $500 of Series F Preferred Stock shall have a stated value of (i) $600 from the first anniversary of the original issue date until the day before the second anniversary of the Original Issue Date; and (ii) $700 from and after the second anniversary of the original issue date until the day before the third anniversary of the original issue date; and (iii) $800 from and after the third anniversary of the original issue date until the day before the fourth anniversary of the original issue date; and (iv) $900 on the fourth anniversary until the mandatory conversion date at which time the total stated value of the Series F Preferred Stock ($900.00) would automatically convert to common stock of the Company at the average closing price of the Common Stock on the 10 Trading Days immediately prior to the mandatory conversion date.
“We believe an exchange offer is a viable and exciting alternative to completing a reverse split of our common stock in an effort to make our Company more attractive to new investors” said Darrell Peterson, CEO of InnovaQor, Inc. “Our Company is entering a phase where new investors are necessary to help us create a significantly more valuable Company. If successful, an exchange offer would create more opportunity to our current shareholders than other methods of restructuring our current capitalization to attract investment.”
The terms and timing of an exchange offer are subject to final approval by the Board of Directors of the Company and market conditions.
