AUSTIN, Texas, Nov. 09, 2018 (GLOBE NEWSWIRE) — EPIC Corporation (OTC PINK: EPOR) (“EPIC” or “Company”) and Ronald S. Tucker announced “EPIC will redeem all its issued and outstanding Series A 5% Convertible Preferred Stock (“Preferred Stock”) with Preferred Shareholders of record on November 30, 2018, on a one share of common for one share of Preferred Stock.”
EPIC is in the process of reorganizing its business and finds it necessary to deal with the conversion provision of the Preferred Stock. The Preferred Stock’s conversion provision provides a formula with the determination of a VWAP price based on a stable and active trading market of EPIC’s common stock.
There has never been and there may never have been a stable and active trading market in the Company’s common stock from which the Company can determine an effective VWAP price to calculate the number of common shares that each share of Preferred stock can be converted into. The conversion provision is unworkable, and no market has ever been made in the Preferred Stock and it has no market value.
EPIC to the resolve the issue of the conversion provision is redeeming all the issued and outstanding shares of Preferred Stock, 2,277,466 shares, on the basis of one share of EPIC common stock for one share of Preferred Stock.
The Preferred Shareholders from August 31, 2015, to November 6, 2018, have received 3,105,985 shares of the Company’s common stock in payment of the Preferred Stock quarterly dividends. This is 572,090 shares of common stock less than the total of 3,678,075 shares of common stock exchanged for the 2,277,466 shares of Preferred Stock. The redemption of the Preferred stock provides the Preferred Shareholders with 1,705,376 more shares of common stock than the shares they exchanged for the Preferred Stock.
EPIC is a crypto financial company.