SIEGEL SEYMOUR 4
4 · Level Brands, Inc. · Filed Apr 22, 2019
Insider Transaction Report
Form 4
SIEGEL SEYMOUR
Director
Transactions
- Conversion
Common Stock
2019-04-22+8,750,000→ 8,750,000 total(indirect: See Footnote)
Footnotes (1)
- [F1]The number of shares acquired represents shares issued to CBD Holding, LLC ("CBDH") under contract rights previously received on December 20, 2018 in connection with the closing of an Agreement and Plan of Merger dated December 3, 2018 following the approval by the Issuer's shareholders for the possible issuance of in excess of 19.99% of its presently outstanding common stock in accordance with the rules of the NYSE American, LLC, as disclosed in the Form 3 filed by R. Scott Coffman on December 28, 2018 and the Form 4 filed by Mr. Coffman on April 22, 2019. The unrestricted voting rights to these shares vests as follows: (i) 2,187,500 shares will vest on December 20, 2019; (ii) an additional 2,187,500 shares will vest on December 20, 2020; (iii) an additional 2,187,500 shares will vest on June 20, 2022; and (iv) the remaining 2,187,500 shares will vest on December 20, 2023. Until the unrestricted voting rights vest with CBDH, the independent chairman of the Audit Committee of the Issuer's Board of Directors (the "Proxyholder") holds voting rights over these shares under the terms of a Voting Proxy Agreement dated December 20, 2018 (the "Proxy Agreement"), and will vote such shares on any matter brought before the Issuer's shareholders in accordance with the recommendation of the Issuer's Board of Directors. The Reporting Person presently serves as the Proxyholder. The Reporting Person disclaims beneficial ownership of the securities held of record by CBDH.