4//SEC Filing
HYDROCARB ENERGY CORP 4
Accession 0001214782-15-000225
CIK 0001425808operating
Filed
Nov 24, 7:00 PM ET
Accepted
Nov 25, 6:43 PM ET
Size
11.7 KB
Accession
0001214782-15-000225
Insider Transaction Report
Form 4
WATTS KENT
Director10% Owner
Transactions
- Conversion
Convertible Subordinated Promissory
2015-09-28−1→ 1 totalExercise: $4.00From: 2015-06-10Exp: 2018-06-10→ Series B Preferred Stock (750,000 underlying) - Other
Series B Convertible Preferred Stock
2015-09-28+3,000→ 3,000 totalFrom: 2015-09-28→ Common Stock (750,000 underlying) - Other
Common Stock
2015-09-30$1.42/sh+3,210$4,558→ 3,970,166 total
Footnotes (6)
- [F1]Represents shares of common stock due on September 30, 2015, in consideration for accrued interest on the $516,667 in outstanding Convertible Subordinated Notes held by Mr. Watts.
- [F2]On or around August 25, 2015, Mr. Watts entered into a voting agreement in favor of S. Chris Herndon, a member of the Board of Directors of the Registrant. Pursuant to the voting agreement, Mr. Watts provided Mr. Herndon a voting proxy to vote all of the shares of common stock which Mr. Watts owns or may acquire in the future, to vote to elect or remove (as applicable) 66.6% of members of the Registrant's Board of Directors on any stockholder vote (i.e., 2 out of 3 directors). On November 16, 2015 the conditions to effectiveness of that agreement were removed, and the voting agreement went into effect. The voting rights remain in effect until the earlier of: (a) August 19, 2017; and (b) the due date of a certain convertible note which a company affiliated with Mr. Herndon (Duma Holdings, LLC) may choose to purchase from the Registrant in the future.
- [F3]Among other terms, all principal and accrued interest on the Convertible Subordinated Promissory Note in the amount of $3 million (the "Note") was convertible at the option of the holder into common stock of the Registrant at $4 per share. Additionally, at such time as the Registrant filed a designation of Series B Convertible Preferred Stock with the Secretary of State of Nevada (which occurred on September 28, 2015), the Note, and any and all accrued and unpaid interest thereon, automatically converted into shares of Series B Convertible Preferred Stock of the Registrant at a conversion price of $1,000 per share (i.e., 3,000 shares of Series B Convertible Preferred Stock).
- [F4]The terms of the Note and Series B Convertible Preferred Stock are described in greater detail in the Form 8-K filed by the Registrant with the SEC on June 19, 2015.
- [F5]Each share of Series B Convertible Preferred Stock converts into 250 shares of common stock.
- [F6]The conversion rights do not expire.
Documents
Issuer
HYDROCARB ENERGY CORP
CIK 0001425808
Entity typeoperating
Related Parties
1- filerCIK 0001425808
Filing Metadata
- Form type
- 4
- Filed
- Nov 24, 7:00 PM ET
- Accepted
- Nov 25, 6:43 PM ET
- Size
- 11.7 KB