Clean Energy Technologies, Inc. (CETY) - Form 8-K Summary
Business Context and Reporting Period
This Current Report on Form 8-K was filed on November 3, 2023, covering an event that occurred on October 31, 2023. Clean Energy Technologies, Inc., a Nevada corporation, reported the designation of a new class of preferred stock.
Key Financial Metrics
The filing does not provide standard financial performance metrics such as revenue, profit, cash flow, margins, debt, or liquidity. The report focuses exclusively on a capital structure event.
Material Changes
On October 31, 2023, the Company filed a certificate of designation with the Nevada Secretary of State to create the 15% Series E Convertible Preferred Stock. Key terms include:
- Authorization: 3,500,000 shares of undesignated preferred stock were designated.
- Stated Value: $1.00 per share.
- Dividends: 15% per annum payable on the Stated Value.
- Conversion: Convertible at the holder's option into common stock at a conversion price of $1.00, calculated by dividing the Stated Value plus accrued dividends by the conversion price.
- Limitations: Subject to a 4.99% beneficial ownership limitation.
- Other Rights: Holders possess specific voting rights and liquidation preferences.
Guidance, Outlook, and Risks
The filing contains no management commentary, forward-looking guidance, or specific risk factors beyond the standard disclosure that the summary of terms is qualified by the full text of the Certificate of Designations filed as Exhibit 4.1.
Investor Verification Checklist
- Review Exhibit 4.1 (Certificate of Designations) for complete terms, voting rights, and liquidation preferences.
- Verify the impact of the 4.99% beneficial ownership limitation on potential conversions.
- Assess the dilution effect on existing common shareholders upon conversion of the Series E Preferred Stock.
- Confirm the Company's ability to service the 15% annual dividend obligation.