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UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 ___ FORM 8K Current Report Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934 Date of Report (Date of the
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Series B Cumulative Convertible refers to a type of preferred stock that is issued by a company during its second round of fundraising. This financial instrument combines features of both debt and equity, allowing investors to convert their shares into common stock at a later date, often at a predetermined conversion rate. The 'cumulative' aspect means that if dividends are not paid, they accumulate and must be paid out before any dividends can be distributed to common shareholders.
Companies that issue Series B Cumulative Convertible shares are typically required to file necessary documentation with regulatory authorities, such as the SEC, usually if they are private companies seeking to go public or if they are subject to certain reporting requirements based on their size, the number of shareholders, or the volume of a securities offering.
Filling out the Series B Cumulative Convertible form generally involves providing information about the company, the terms of the preferred shares, the rights associated with the shares, and details regarding the use of proceeds from the funding round. It's crucial to refer to the specific guidelines from regulatory authorities to ensure compliance.
The purpose of Series B Cumulative Convertible shares is to raise capital for expanding the business while giving investors the possibility of converting their investment into equity shares, potentially benefiting from the company's growth and success.
Commonly required information includes the number of shares issued, the rights and privileges of those shares, details on dividends, conversion ratios, and the intended use of funds raised through the issuance.
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