Wasatch Education Systems Corp., 5250 S. 300 West, has entered into a conditional agreement with its two largest shareholders wherein they have agreed to purchase up to $1 million of new Series B convertible preferred stock at $1.30 per share in exchange for certain secured short-term notes now outstanding.
The preferred stock will be convertible into common stock at one share for each share of preferred. The agreement is conditioned on a requirement that the company stock qualify for continued listing on NASDAQ.Currently, the company doesn't meet the NASDAQ net worth requirements and has received an extension until June 30 to meet them.
The company also intends to privately offer Series B preferred stock to existing Wasatch convertible debenture holders and certain other private investors so that, together with the agreed purchase of $1 million in stock to Technology Funding and Loyalbanna, will be able to meet the June 30 deadline.