4//SEC Filing
Somodi Thomas J 4
Accession 0001209191-11-054017
CIK 0001137091other
Filed
Nov 1, 8:00 PM ET
Accepted
Nov 2, 8:14 PM ET
Size
30.1 KB
Accession
0001209191-11-054017
Insider Transaction Report
Form 4
Somodi Thomas J
See RemarksOther
Transactions
- Exercise of In-Money
Common Stock
2011-10-31−830,925→ 0 total - Conversion
Series A Convertible Preferred Stock
2011-08-26−9,596.09→ 0 totalFrom: 2011-04-29→ Common Stock (799,675 underlying) - Other
Contract to Buy Common Stock (obligation to buy)
2011-10-31−1→ 1 total→ Common Stock (337,590 underlying) - Exercise of In-Money
Contract to Sell Srs A Cnvrtbl Prf Stock(obligation to sell)
2011-10-31−799,675→ 0 total→ Common Stock (799,675 underlying) - Exercise of In-Money
Contract to Sell Common Stock (obligation to sell)
2011-10-31−31,250→ 0 total→ Common Stock (31,250 underlying) - Conversion
Common Stock
2011-08-26+799,675→ 830,925 total
Footnotes (14)
- [F1]Each share of Series A Convertible Preferred Stock was initially convertible at any time at the election of the holder thereof into a number of shares of the issuer's common stock equal to the result of $1,000 (the liquidation preference of each share of Series A Convertible Preferred Stock) divided by the conversion price then in effect. The initial conversion price was $0.375, and was subject to full ratchet anti-dilution protection and to other adjustments for non-cash dividends, distributions, stock splits or other subdivisions or reclassifications of the issuer's common stock. On August 26, 2011, Power Solutions International, Inc., a Nevada corporation, merged with and into its wholly owned subsidiary, Power Solutions International, Inc., a Delaware corporation, pursuant to an agreement and plan of merger between Power Solutions International, Inc., a Delaware corporation, and Power Solutions International, Inc., a Nevada corporation (collectively, the "Migratory Merger").
- [F10](continued from Footnote 9) Pursuant to the Purchase and Sale Agreement, as amended by the Purchase and Sale Amendment, Mr. Winemaster agreed to deliver to the reporting person: (A) an aggregate of 112,530 shares of the issuer's common stock within 90 days of such time as the value per share of the issuer's common stock is at least $22.2162 (determined as provided in the Purchase and Sale Agreement, as amended by the Purchase and Sale Amendment); (B) an additional aggregate of 135,036 shares of the issuer's common stock within 90 days of such time as the value per share of the issuer's common stock is at least $27.7717 (determined as provided in the Purchase and Sale Agreement, as amended by the Purchase and Sale Amendment);
- [F11](continuted from Footnote 10) and (C) an additional aggregate of 90,024 shares of the issuer's common stock within 90 days of such time as the value per share of the issuer's common stock is at least $33.3244 (determined as provided in the Purchase and Sale Agreement, as amended by the Purchase and Sale Amendment). Mr. Winemaster continues to have the right to elect to make a payment to the reporting person equal to the then-value of the shares Mr. Winemaster would otherwise be required to deliver pursuant to the foregoing provisions, and Mr. Winemaster's obligations will still expire if the issuer has not achieved the applicable value per share of the issuer's common stock milestones by April 29, 2016. All share and per share numbers are subject to adjustment for stock splits, stock dividends, stock combinations and similar events
- [F12]Originally represented an obligation of Mr. Winemaster, upon the issuer's achievement of certain market value per share of the issuer's common stock milestones set forth in the Purchase and Sale Agreement described above, to sell to the reporting person 1,000,000 shares of the issuer's common stock, subject to adjustment for stock splits, stock dividends, stock combinations and similar events (including the Reverse Split). Giving effect to, and upon the consummation of, the Migratory Merger (including the Reverse Split effected thereby), these provisions of the Purchase and Sale Agreement represented an obligation of Mr. Winemaster to sell to the reporting person 31,250 shares of the issuer's common stock.
- [F13]Originally represented an obligation of Mr. Winemaster, upon the issuer's achievement of certain market value per share of the issuer's common stock milestones set forth in the Purchase and Sale Agreement described above, to sell to the reporting person 9,596.09002 shares of Series A Convertible Preferred Stock, subject to adjustment for stock splits, stock dividends, stock combinations and similar events (including the Reverse Split). Giving effect to, and upon the consummation of, the Migratory Merger (including the Reverse Split effected thereby and the automatic conversion of Series A Convertible Preferred Stock into shares of the issuer's common stock resulting therefrom as described in footnotes 1 and 2 above), these provisions of the Purchase and Sale Agreement represented an obligation of Mr. Winemaster to sell to the reporting person 799,675 shares of the issuer's common stock.
- [F14]Reflects the adjusted number of shares which Mr. Winemaster is required to transfer to the reporting person upon the issuer's achievement of certain market value per share of the issuer's common stock milestones pursuant to the Purchase and Sale Agreement, giving effect to the Purchase and Sale Amendment, all as described in footnotes 5, 6, 7, 9, 10 and 11 above.
- [F2](continued from Footnote 1) Power Solutions International, Inc., a Delaware corporation, continued as the surviving entity of the Migratory Merger. Pursuant to the Migratory Merger, the issuer changed its state of incorporation from Nevada to Delaware and each 32 shares of the issuer's common stock converted into one share of common stock of the surviving entity in the Migratory Merger, thereby effecting a 1-for-32 reverse stock split of the issuer's common stock (the "Reverse Split"). Upon the consummation of the Migratory Merger (including the Reverse Split effected thereby), each issued and outstanding share of Series A Convertible Preferred Stock automatically converted into shares of the issuer's common stock, at a conversion price of $12.00 per share, as adjusted for the Reverse Split.
- [F3]Pursuant to a purchase and sale agreement dated April 28, 2011 (the "Purchase and Sale Agreement"), by and between the reporting person and Gary S. Winemaster, Mr. Winemaster agreed to purchase from the reporting person, and the reporting person agreed to sell to Mr. Winemaster, 1,000,000 shares of the issuer's common stock (31,250 shares of common stock giving effect to the Reverse Split) and 9,596.09002 shares of Series A Convertible Preferred Stock (799,675 shares of common stock giving effect to the Reverse Split), in each case subject to adjustment for stock splits, stock dividends, stock combinations and similar events, including the Reverse Split (collectively, the "Seller Shares"), at an initial closing.
- [F4](continued from Footnote 3) In exchange for the Seller Shares, Mr. Winemaster agreed to make (A) a cash payment to the reporting person equal to $2,500,000, payable at such initial closing, (B) an additional cash payment to the reporting person equal to $1,750,000, payable after the earlier of the hiring by the issuer of a new Chief Financial Officer and April 29, 2013 (provided that Mr. Winemaster has agreed to make such payment in no event later than the later of 60 days after such earlier date and December 29, 2011), and (C) Mr. Winemaster's agreement to transfer to the reporting person shares of the issuer's common stock, or cash payment in lieu thereof, upon the issuer's achievement of certain market value per share of the issuer's common stock milestones, as more fully described in footnotes 5, 6 and 7 below.
- [F5]As additional consideration for the acquisition of the Seller Shares by Mr. Winemaster pursuant to the Purchase and Sale Agreement, Mr. Winemaster agreed to deliver to the reporting person, within 90 days of the first date on which the issuer first achieves market value per share of the issuer's common stock milestones as follows: (A) an aggregate of 3,933,333 shares of the issuer's common stock (122,917 shares giving effect to the Reverse Split) after the first period of ten consecutive trading days after the effectiveness of the Reverse Split on each of at least seven of which the market value per share of the issuer's outstanding common stock (calculated in accordance with the Purchase and Sale Agreement) is at least $0.6356 ($20.3392 giving effect to the Reverse Split);
- [F6](continued from Footnote 5) (B) an additional aggregate of 4,720,000 shares of the issuer's common stock (147,500 shares giving effect to the Reverse Split) after the first period of ten consecutive trading days after the effectiveness of the Reverse Split on each of at least seven of which the market value per share of the issuer's outstanding common stock (calculated in accordance with the Purchase and Sale Agreement) is at least $0.7945 ($25.424 giving effect to the Reverse Split); and (C) an additional aggregate of 3,146,656 shares of the issuer's common stock (98,333 shares giving effect to the Reverse Split) after the first period of ten consecutive trading days after the effectiveness of the Reverse Split on each of at least seven of which the market value per share of the issuer's outstanding common stock (calculated in accordance with the Purchase and Sale Agreement) is at least $0.9534 ($30.5088 giving effect to the Reverse Split).
- [F7](continued from Footnote 6) Pursuant to the Purchase and Sale Agreement, Mr. Winemaster, at his sole option and in lieu of delivering shares of the issuer's common stock as described above, had the right to elect to make a payment to the reporting person equal to the then-market value of the shares the reporting person would otherwise be required to deliver pursuant to the provisions described in these footnotes 5, 6 and 7. Mr. Winemaster's obligations will expire if the issuer has not achieved the applicable market value per share of the issuer's common stock milestones by April 29, 2016.
- [F8]On October 31, 2011, the reporting person and Mr. Winemaster entered into an Amendment to Purchase and Sale Agreement (the "Purchase and Sale Amendment"). Pursuant to the Purchase and Sale Agreement, as amended by the Purchase and Sale Amendment, in lieu of Mr. Winemaster delivering to the reporting person cash payments at two closings in an aggregate of $4,250,000 in exchange for the Seller Shares, on October 31, 2011, Mr. Winemaster purchased from the reporting person the Seller Shares in exchange for delivery by Mr. Winemaster of a full-recourse promissory note in the aggregate principal amount of $4,250,000, which note was paid in full by Mr. Winemaster on October 31, 2011.
- [F9]Pursuant to the Purchase and Sale Amendment, the terms upon which Mr. Winemaster is required to transfer to the reporting person shares of the issuer's common stock, or cash payment in lieu thereof, upon the issuer's achievement of certain market value per share of the issuer's common stock milestones as described in footnotes 5, 6 and 7 above were amended to, among other things, reflect that, following the purchase of the Seller Shares by Mr. Winemaster from the reporting person pursuant to the Purchase and Sale Agreement, as amended by the Purchase and Sale Amendment, on October 31, 2011, Mr. Winemaster sold the Seller Shares to the issuer pursuant to a Stock Purchase Agreement.
Documents
Issuer
POWER SOLUTIONS INTERNATIONAL, INC.
CIK 0001137091
Entity typeother
Related Parties
1- filerCIK 0001517042
Filing Metadata
- Form type
- 4
- Filed
- Nov 1, 8:00 PM ET
- Accepted
- Nov 2, 8:14 PM ET
- Size
- 30.1 KB