Summary by Futu AI
Smart for Life, Inc. has announced the creation of a new series of preferred stock, designated as series C preferred stock, through a certificate of designation filed with the Nevada Secretary of State on March 1, 2024. The company has allocated 20,000 shares of its preferred stock to this new series. Series C preferred stockholders are entitled to dividends equivalent to common stockholders, liquidation rights that prioritize them equally with series B preferred stockholders and above common stockholders, and voting rights on an as-converted basis. Each share of series C preferred stock is convertible into common stock at a conversion price of $1.00, subject to certain ownership limitations which can be waived by the holder. Additionally, Smart for Life has entered into conversion agreements with certain lenders, converting $3,041,205 of debt into 760,600 shares of common stock and 23,601 shares of series C preferred stock. These transactions have resulted in the company's stockholder’s equity surpassing $2.5 million as reported in the first quarter of 2024.