Item 1.01. Entry into a Material Definitive Agreement.
On
Under the terms and subject to the conditions of the Purchase Agreement, the
Company has the right, but not the obligation, to sell to Lincoln Park, and
Lincoln Park is obligated to purchase up to in the aggregate
Thereafter, under the Purchase Agreement, on any business day selected by the
Company, the Company may direct Lincoln Park to purchase up to 1,000,000 shares
of Common Stock on such business day (each, a "Regular Purchase"), provided,
however, that (i) the Regular Purchase may be increased to up to 1,250,000
shares, provided that the closing sale price of the Common Stock is not below
In addition to Regular Purchases, the Company may also direct Lincoln Park to purchase other amounts as accelerated purchases or as additional accelerated purchases if the closing sale price of the common stock exceeds certain threshold prices as set forth in the Purchase Agreement.
Lincoln Park has no right to require the Company to sell any shares of common
stock to Lincoln Park, but Lincoln Park is obligated to make purchases as we
direct, subject to certain conditions. In all instances, the Company may not
sell shares of its common stock to Lincoln Park under the purchase agreement if
it would result in
The Company has agreed with Lincoln Park that it will not enter into any "variable rate" transactions with any third party for a period defined in the Purchase Agreement. The Company issued to Lincoln Park 2,275,086 shares of Common Stock as consideration for its commitment to purchase shares of Common Stock under the Purchase Agreement.
Lincoln Park represented to the Company, among other things, that it was an "accredited investor" (as such term is defined in Rule 501(a) of Regulation D under the Securities Act of 1933, as amended (the "Securities Act")), and the Company sold the securities in reliance upon an exemption from registration contained in Section 4(a)(2) of the Securities Act and Regulation D promulgated thereunder. -------------------------------------------------------------------------------- The Purchase Agreement and the Registration Rights Agreement contain customary representations, warranties, agreements and conditions to completing future sale transactions, indemnification rights and obligations of the parties. The Company has the right to terminate the Purchase Agreement at any time, at no cost or penalty. During any "event of default" under the Purchase Agreement, all of which are outside of Lincoln Park's control, Lincoln Park does not have the right to terminate the purchase agreement; however, the Company may not initiate any regular or other purchase of shares by Lincoln Park, until such event of default is cured. In addition, in the event of bankruptcy proceedings by or against the Company, the purchase agreement will automatically terminate.
Actual sales of shares of Common Stock to Lincoln Park under the Purchase Agreement will depend on a variety of factors to be determined by the Company from time to time, including, among others, market conditions, the trading price of the Common Stock and determinations by the Company as to the appropriate sources of funding for the Company and its operations. Lincoln Park has no right to require any sales by the Company, but is obligated to make purchases from the Company as it directs in accordance with the Purchase Agreement. Lincoln Park has covenanted not to cause or engage in any manner whatsoever, any direct or indirect short selling or hedging of the Company's shares.
The net proceeds under the Purchase Agreement to the Company will depend on the
frequency and prices at which the Company sells shares of its Common Stock to
Lincoln Park, and will be subject to placement fees as set detailed in the
Company's current report on Form 8-K filed with the
This current report on Form 8-K shall not constitute an offer to sell or a solicitation of an offer to buy any shares of common stock, nor shall there be any sale of shares of common stock in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.
The foregoing descriptions of the purchase agreement and the registration rights agreement are qualified in their entirety by reference to the full text of such agreements, copies of which are attached hereto as Exhibit 10.01 and 10.02, respectively, and each of which is incorporated herein in its entirety by reference. The representations, warranties and covenants contained in such agreements were made only for purposes of such agreements and as of specific dates, were solely for the benefit of the parties to such agreements, and may be subject to limitations agreed upon by the contracting parties.
Item 3.02 Unregistered Sales of
The information contained above in Item 1.01 is hereby incorporated by reference into this Item 3.02.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibit No. Description. 10.01 Purchase Agreement, dated effective January 16, 2020, by and between Alpine 4 Technologies Ltd. and Lincoln Park Capital Fund, LLC 10.02 Registration Rights Agreement, dated effective January 16, 2020, by and between Alpine 4 Technologies Ltd. and Lincoln Park Capital Fund, LLC
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