Corporate ActionMay 12, 2026, 06:07 AM
Functional Brands Reduces Series C Preferred Stock Conversion Price to $0.1636
AI Summary
Functional Brands Inc. entered into a Conversion Price Reduction and Waiver Agreement with holders of its Series C Convertible Preferred Stock. The agreement reduces the conversion price to $0.1636 per common share, replacing previous tiered pricing, and waives the prohibition on below-price conversions for this new rate. Additionally, any unpaid Cash Consideration from a prior Exchange and Amendment Agreement will be added as unsecured additional principal to existing exchange notes. The company is obligated to file an amendment to the Series C Certificate to reflect these changes.
Key Highlights
- Conversion price for Series C Preferred Stock reduced to $0.1636 per common share.
- New conversion price replaces existing tiered conversion prices and tier allocation.
- Prohibition on below-price conversions waived for conversions at the reduced price.
- Unpaid Cash Consideration from March 9, 2026, Exchange Agreement to be capitalized as unsecured additional principal on existing exchange notes.
- Company will file an amendment to the Series C Certificate to conform to the agreement terms.
Price Impact
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