Annual report pursuant to Section 13 and 15(d)

Common Stock, Preferred Stock and Warrants

v3.20.2
Common Stock, Preferred Stock and Warrants
12 Months Ended
Apr. 30, 2020
Stockholders' Equity Note [Abstract]  
Common Stock, Preferred Stock and Warrants

Note 8 – Common Stock

 

We are authorized to issue 500,000,000 shares of common stock. Each share of common stock is entitled to one vote.

 

Note 9 – Preferred Stock

 

Our Series A Preferred Stock (“Series A Stock”) is convertible to common stock at a ratio of 8.33 shares of common stock for each share of Series A Stock, and votes together with the common stock on an as-converted basis. The Series A Preferred Stock was originally issued under the Securities Exchange Agreement, as further described in Note 1. The Series A Stock was automatically converted into shares of common stock upon the effectiveness of our reverse stock split in August 2019, except for 208,704 shares which were subject to a limitation on the number of shares of common stock that can be held by the holder of those shares of Series A Stock.

 

Our Series B Preferred Stock (“Series B Stock”) is convertible into common stock at a ratio of 0.8334 shares of common stock for each share of Series B Stock held and votes together with the common stock on an as-converted basis. The Series B Preferred Stock was originally issued under the Exchange Agreement, as further described in Note 1. Conversions of Series B Stock into Common Stock are as follows:

 

Date   Series B   Common Stock
July 2019   240,000   200,000
November 2019   60,000   50,000
December 2019   231,022   192,519

 

Note 10 - Warrants

 

In May 2019, as part of the Share Exchange Agreement, we issued warrants to purchase 469,874 shares of common stock at an exercise price of $0.324 per share of common stock. The value of these warrants was considered to be a nominal amount at the time of issuance. In September 2019, we received $152,239 in connection with the exercise of these warrants. We also assumed a fully vested, restricted stock unit agreement requiring the issuance of 41,667 shares of common stock in May 2021, as well as a warrant to purchase 5,556 shares of common stock at an exercise price of $60.00 per share. This warrant expires in March 2021.