Visium Technologies Establishes Series G Governing Stock, Launches Remediation Plan for Legacy Preferred Shares

summarizeSummary

Visium Technologies has created a new Series G Governing Preferred Stock with absolute voting control and initiated a remediation plan to address its problematic legacy Series A and B Preferred Stock, aiming to clean up its capital structure.

check_boxKey Events · Corporate Governance and Compliance · VISM

• New Governing Preferred Stock Created

  Visium Technologies, Inc. established Series G Governing Preferred Stock with absolute majority voting control and veto rights over other preferred series, amending its Articles of Incorporation.

• Control Shares Issued

  Four shares of Series G Governing Preferred Stock were issued to existing Series AA holders and/or affiliates for nominal consideration, consolidating control.

• Legacy Preferred Stock Remediation Plan

  The company launched a plan to address its outstanding Series A and B Preferred Stock, offering qualifying holders a choice of cash redemption or common stock exchange, and asserting that conversion for non-qualifying shares is remote.

• Significant Financial Commitment

  The remediation plan includes a potential cash redemption of up to $874,521 for Series A shares, a substantial amount for the nano-cap company relative to its market capitalization.

auto_awesomeAnalysis · VISM · Technology

This filing marks a critical step in Visium Technologies' ongoing efforts to restructure its highly complex and problematic capital table. The establishment of Series G Governing Preferred Stock, which carries absolute majority voting control and veto rights over actions concerning Series A and B Preferred Stock, fundamentally shifts corporate governance. This new control mechanism enables the company to implement a remediation plan for its legacy Series A and B shares, which have long been an overhang. The plan offers holders a choice of cash redemption (potentially up to $874,521 for Series A, a substantial sum relative to the company's market cap) or exchange for common stock, while asserting that the probability of conversion for non-qualifying shares is remote. This aggressive move aims to resolve long-standing capital structure issues and is crucial for the company's long-term viability, despite the significant financial commitment and potential for legal challenges.