The proposed amendment to the certificate of incorporation in Lima, Arizona aims to authorize up to 10,000,000 shares of preferred stock with certain amendments. This amendment grants the company flexibility in terms of equity financing, providing additional opportunities for investment, expansion, and growth. Preferred stock refers to a class of shares that possess certain benefits, rights, or privileges compared to common stockholders. These preferred shares often receive a fixed dividend payment before common shareholders receive any dividends. Additionally, in the event of liquidation or bankruptcy, preferred stockholders are typically given priority over common stockholders in receiving their investment back. There are various types of preferred stock that can be authorized with this proposed amendment. These may include: 1. Cumulative Preferred Stock: This type of preferred stock accumulates unpaid dividends and must be paid out to the shareholders before dividends can be paid to common stockholders. If the company doesn't pay dividends in a particular year, these unpaid dividends will continue to accumulate until they are settled. 2. Convertible Preferred Stock: Convertible preferred stock provides the option for shareholders to convert their preferred stock into a predetermined number of common shares at a specified conversion ratio. This allows preferred stockholders to benefit from potential capital appreciation of the common stock. 3. Participating Preferred Stock: This type of preferred stock gives shareholders the right to receive extra dividends in addition to the fixed dividend payment if the company exceeds a certain profitability threshold. Participating preferred stockholders share the excess profits with common stockholders. 4. Non-Cumulative Preferred Stock: Unlike cumulative preferred stock, non-cumulative preferred stock does not accumulate unpaid dividends. If the company fails to pay dividends in a particular year, the shareholders have no claim to dividends for that period. 5. Redeemable Preferred Stock: Redeemable preferred stock can be repurchased by the company at a predetermined price after a specified date. This provides the company with the flexibility to retire or repurchase the preferred stock in the future. By amending the certificate of incorporation, Lima, Arizona aims to enhance its financial flexibility, attract potential investors, and empower the company to access additional capital through the issuance of preferred stock. These amendments ensure that the company can adapt to changing financial requirements and pave the way for future growth and success.
The proposed amendment to the certificate of incorporation in Lima, Arizona aims to authorize up to 10,000,000 shares of preferred stock with certain amendments. This amendment grants the company flexibility in terms of equity financing, providing additional opportunities for investment, expansion, and growth. Preferred stock refers to a class of shares that possess certain benefits, rights, or privileges compared to common stockholders. These preferred shares often receive a fixed dividend payment before common shareholders receive any dividends. Additionally, in the event of liquidation or bankruptcy, preferred stockholders are typically given priority over common stockholders in receiving their investment back. There are various types of preferred stock that can be authorized with this proposed amendment. These may include: 1. Cumulative Preferred Stock: This type of preferred stock accumulates unpaid dividends and must be paid out to the shareholders before dividends can be paid to common stockholders. If the company doesn't pay dividends in a particular year, these unpaid dividends will continue to accumulate until they are settled. 2. Convertible Preferred Stock: Convertible preferred stock provides the option for shareholders to convert their preferred stock into a predetermined number of common shares at a specified conversion ratio. This allows preferred stockholders to benefit from potential capital appreciation of the common stock. 3. Participating Preferred Stock: This type of preferred stock gives shareholders the right to receive extra dividends in addition to the fixed dividend payment if the company exceeds a certain profitability threshold. Participating preferred stockholders share the excess profits with common stockholders. 4. Non-Cumulative Preferred Stock: Unlike cumulative preferred stock, non-cumulative preferred stock does not accumulate unpaid dividends. If the company fails to pay dividends in a particular year, the shareholders have no claim to dividends for that period. 5. Redeemable Preferred Stock: Redeemable preferred stock can be repurchased by the company at a predetermined price after a specified date. This provides the company with the flexibility to retire or repurchase the preferred stock in the future. By amending the certificate of incorporation, Lima, Arizona aims to enhance its financial flexibility, attract potential investors, and empower the company to access additional capital through the issuance of preferred stock. These amendments ensure that the company can adapt to changing financial requirements and pave the way for future growth and success.
