ITEM 3.02 UNREGISTERED SALES OF EQUITY SECURITIES
On January 3, 2022, Sparta Commercial Services, Inc. (the "Company") entered
into agreements with Anthony L. Havens, the Company's Chief Executive Officer
("Havens") and Sandra L. Ahman, the Company's Vice-President of Operations
("Ahman") whereby Havens and Ahman agreed to convert debt owed to them in
exchange for non-qualified stock options. Havens agreed to convert $137,465.76
of deferred salary in exchange for a stock option agreement (the "Havens Stock
Option Agreement") to purchase 1,718,322 shares of the Company's common stock.
Ahman agreed to convert $125,000 of deferred salary in exchange for a stock
option agreement (the "Ahman Stock Option Agreement" and with the Havens Stock
Option Agreement, the "Stock Option Agreements") to purchase 1,562,500 shares of
the Company's common stock. The stock options granted pursuant to the Stock
Option Agreements have five year terms, vest immediately, and have an exercise
price of $0.08 which was 111% of the closing price of the Company's common stock
for the thirty consecutive trading days immediately preceding the date of the
option (for a day to be included in the calculation, there must have been at
least 100 shares traded on that day). The sales of the above securities were
deemed to be exempt from registration under the Securities Act in reliance on
Section 4(a)(2) of the Securities Act as transactions by an issuer not involving
any public offering. The recipients of the securities in each of these
transactions represented their intentions to acquire the securities for
investment only and not with a view to, or for sale in connection with, any
distribution thereof. All recipients had adequate access, through their
relationships with the Company, to information about the Company.
On January 3, 2022, the Company granted to each of its two independent Directors
five year options to purchase 187,500 shares of the Company's common stock at
$0.08 per share. The options vest in three equal tranches over three years.
These options represent compensation for past service on the board.
On January 3, 2022, the Company granted its CEO, Anthony L Havens and Vice
President of Operations, Sandra L Ahman, five year options to purchase an
aggregate of 750,000 shares of the Company's common stock at $0.08 per share.
The options vest in three equal tranches over three years.
The foregoing disclosure of the Stock Option Agreements set forth in this
Section 3.02 does not purport to be complete, and is qualified in its entirety
by reference to the Stock Option Agreements, which are filed as Exhibits 4.1,
4.2, 4.3, 4.4, 4.5, and 4.6 of this Current Report and incorporated by reference
herein.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS
(D) Exhibits
Exhibit No. Description
4.1 Sandra Ahman Stock Option Agreement - Debt Conversion
4.2 Anthony L. Havens Stock Option Agreement - Debt Conversion
4.3 Jeffrey Bean Stock Option Agreement
4.4 Kristian Srb Stock Option Agreement
4.5 Sandra Ahman Stock Option Agreement
4.6 Anthony L. Havens Stock Option Agreement
104 Cover Page Interactive Data File (embedded within the Inline XBRL
document)
© Edgar Online, source Glimpses