DigiPath Dramatically Improves Cap Table with Amended Series A Preferred Stock Terms
Ryan Allway
March 16th, 2015
News, Top News
[stockquote symbol=DIGP]
DigiPath Inc. [stockquote symbol=DIGP], a provider of reliable testing, education, training, and news coverage targeting the emerging cannabis industry, filed an 8-K with the SEC on March 13, 2015 disclosing an amendment to the terms of its Series A Preferred Stock, which was approved by its Board of Directors and holders of Series A Convertible Preferred Stock.
Click Here: Read the Entire 8-K SEC Filing
Under the new terms, the conversion price of the Series A Stock was amended to remove the variable conversion feature from it, such that the stock will simply convert at a price of $0.02 per share instead of the lower of $0.02 per share and 70% of the volume weighted average price of the common stock in the 20 days preceding the date of conversion.
After giving effect to the filing of the Certificate of Amendment, the company had 97,326,586 shares of common stock outstanding, and 257,622,100 additional shares of common stock issuable upon conversion of 5,152,442 shares of Series A Stock currently outstanding. The move significantly reduces the potential dilution associated with the original terms of the Series A Stock.
DigiPath previously reported that revenue had increased 216% to $174,000 during its first fiscal quarter ended December 31, 2014 compared to the first quarter of the prior year, ahead of the opening of its flagship cannabis-testing laboratory in 2015. Management has also diversified into the media industry with the launch of its TNMNews subsidiary, which has already featured interviews with some of the leading personalities within the cannabis industry.
Information about Forward-Looking Statements:
This release contains “forward-looking statements” that include information relating to future events, and future financial and operating performance. Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by, which that performance or those results will be achieved. Forward-looking statements are based on information available at the time they are made and/or management’s good faith belief as of that time with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in, or suggested by, the forward-looking statements. Important factors that could cause these differences include, but are not limited to: the demand for the Company’s products, the introduction of new products, the Company’s ability to maintain customer and strategic business relationships, the impact of competitive products and pricing, growth in targeted markets, the adequacy of the Company’s liquidity and financial strength to support its growth, and other information that may be detailed from time-to-time in the Company’s filings with the United States Securities and Exchange Commission. For a more detailed description of the risk factors and uncertainties affecting DigiPath, please refer to the Company’s recent Securities and Exchange Commission filings, which are available at www.sec.gov. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.
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