Yunhong CTI Ltd. (NasdaqCM:CTIB) announced that it has entered into a purchase agreement with existing investor LF International Pte. Ltd. for private placement of 170,000 series C redeemable convertible preferred shares at a price of $8.824 per share gross proceeds of $1,500,000 on January 15, 2021. The preferred shares are initially convertible into 10 shares of the company’s common stock. The stated value of the preferred shares is $10 per share. The holders of the preferred shares will be entitled to receive quarterly dividends at the annual rate of 8% of the stated value. Such dividends may be paid in cash or in shares of common stock in the Company’s discretion. In the event of any liquidation, dissolution or winding up of the company, the holders of record of shares of series C preferred will be entitled to receive, in preference to any distribution to the holders of the company’s other equity securities (including the company’s common stock), a liquidation preference equal to $10 per share plus all accrued and unpaid dividends. Each holder of series C preferred share shall have the right to convert the Stated Value of such shares, as well as accrued but unpaid declared dividends thereon into shares of the company’s common stock. The number of shares of common stock issuable upon conversion of the conversion amount shall equal the conversion amount divided by the conversion price of $1, subject to certain customary adjustments. The series C preferred may not be converted to common stock to the extent such conversion would result in the holder beneficially owning more than 4.99% of the Company’s outstanding common stock. The shares will be issued pursuant to exemption provided under Section 4(a)(2) of the Securities Act of 1933, as amended. The transaction is subject to approval of company's shareholders. The transaction is approved by the board of directors of the company.