Quarterly report pursuant to Section 13 or 15(d)

Note 15 - Preferred Stock and Warrants

v3.20.2
Note 15 - Preferred Stock and Warrants
6 Months Ended
Sep. 26, 2020
Notes to Financial Statements  
Preferred Stock [Text Block]
 
(
1
5
)      Preferred Stock and Warrants
 
Series E Senior Convertible Voting Perpetual Preferred Stock
 
 
On
March 28, 2018,
the Company issued and sold
42,800
shares of a newly designated series of
6.0%
Series E Senior Convertible Voting Perpetual Preferred Stock (“Series E Shares”) to approximately
15
investors in a private placement for gross proceeds of approximately
$1.095
million. Net proceeds to the Company after fees and expenses were approximately
$1.0
million. During the
2019
fiscal year, the Company issued and sold an additional
56,200
Series E Shares resulting in additional gross proceeds of
$1,405,000
or approximately
$1.2
million after fees and expenses of approximately
$212,000.
 
Holders of Series E Shares are entitled to receive, when, as and if declared by the Company's Board of Directors, cumulative preferential dividends, payable semiannual in cash at a rate per annum equal to
6.0%
of the initial purchase price of
$25.00
per share or in-kind (at the Company's election) through the issuance of shares of the Company's common stock, based on the preceding
10
day volume weighted average price of the common stock. The deemed dividend is reflected on the face of the income statement as a decrease in net income or increase in the case of net loss to arrive at net income or loss attributable to common shareholders.
 
Series E Exchange
 
The Company completed a private exchange offer on
November 7, 2019,
issuing an aggregate of
896,636
shares of common stock in exchange for
88,600
shares of Series E Preferred Stock and the unpaid dividends accrued thereon. The shares of common stock issued in the exchange were issued in reliance on the exemption from registration set forth in Section
3
(a)(
9
) of the Securities Act of
1933
(the “Securities Act”), though other exemptions
may
be available.
 
For the
six
months ended
September 26, 2020,
no
additional Series E shares were issued.
 
The table below presents information as of
September 26, 2020
and
March 28, 2020:
 
 
 
Preferred Stock
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
Shares
   
 
Shares
   
 
Shares
   
Liquidation
Preference
 
   
Designated
   
Issued
   
Outstanding
   
(in thousands)
 
Series B
   
10,000.00
     
9,997.00
     
9,245.13
    $
2,136
 
Series C
   
3,500.00
     
3,424.65
     
3,424.65
     
500
 
Series D
   
6,000.00
     
5,111.86
     
5,111.86
     
731
 
Series E
   
100,000.00
     
100,000.00
     
9,200.00
     
345
 
Total at September 26, 2020 and March 28, 2020
 
 
119,500.00
   
 
118,533.51
   
 
26,981.64
   
$
3,712