Investview to offer 12% convertible preferreds for common shares

By Wendy Van Sickle

Columbus, Ohio, Oct. 17 – Investview Inc. is planning to offer new shares of its 12% series A convertible preferred shares in exchange for its existing common shares, according to a news release.

For every 500 outstanding shares of common stock, Investview plans to offer to exchange one share of series A convertible preferred stock, which has a liquidation value of $10.00 per share.

The exchange ratio is subject to adjustment based on the then prevailing common stock price.

As of Oct. 2, the closing price of Investview’s common stock was $0.014 per share, and there were 2,697,876,966 shares of common stock outstanding.

The exchange offer is expected to commence later in October and run for 20 business days.

Dividends on the convertible preferreds will be paid in cash or in kind at the company’s election.

Each convertible preferred would entitle its holder to 500 votes in all matters upon which stockholders are entitled to vote and would be optionally convertible at any time by the holder into 500 shares of common stock.

Additionally, holders of the convertible preferreds would have a right to participate pro rata, through Dec. 31, 2021, with respect to issuances of future equity or equity-linked securities of the company.

Investview would have the right to redeem all or part of the outstanding shares of preferreds at a redemption price equal to 125% of the liquidation preference after one year and to cause all outstanding shares of the preferreds to be converted into 500 shares of its common stock at any time after the earlier of the date the common stock commences trading on a national securities exchange or Dec. 31, 2022.

There is no minimum tender condition, but the exchange offer would be subject to the conditions that there will be at least 300 holders of record of its common stock following the offer and the series A preferred stock being approved for market trading and quotation.

“The exchange offer is the first of a series of strategic actions we are taking to establish a framework for long term appreciation of shareholder value,” Mario Romano, the company’s director of finance, said in the release.

The company said it plans to hold an information webinar to provide details on the exchange offer.

The investor technology and education company is based in Red Bank, N.J.

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