Company: PNBK
Filing Date: 2025-05-16
Form Type: PRE 14A
Source: 0001140361-25-019517
Chunk: 4

Company: PATRIOT NATIONAL BANCORP INC
Filing Date: 2025-05-16
Form: PRE 14A
Chunk 4
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olders converted approximately $7.0 million of the aggregate principal amount of the Notes into 9,333,334 shares of common stock and entered into Purchase Agreements with us. We requested and received from the Nasdaq Listing Qualifications Department an exception from the shareholder approval rules of The Nasdaq Stock Market LLC (“Nasdaq”) related to the Private Placement pursuant to the “financial viability exception” set forth in Nasdaq Listing Rule 5635(f). Equity Plan Proposal and Charter Proposal Under the terms of the Purchase Agreements, we are required to obtain shareholder approval of:

| (i) | the amended and restated Certificate of Incorporation of the Company, which will authorize the issuance of (x) up to 2,000,000,000 shares of common stock, of which 200,000,000 shares of common stock will be designated as non-voting common stock, and 1,800,000,000 shares will be designated as voting common stock, and (y) 200,000,000 shares will be designated as preferred stock, without par value, which will contain such rights, privileges and designations as our Board may from time to time designate; and |

| (ii) | the Omnibus Equity Incentive Plan that was approved by the Board in connection with the Private Placement, subject to the shareholder approval. |

In addition, pursuant to the Purchase Agreements, if our shareholders approve the Amended and Restated Certificate of Incorporation at the Annual Meeting, we are required to, effective as of the date that we shall have filed the Amended and Restated Certificate of Incorporation with the Secretary of State of the State of Connecticut, provide for the automatic conversion of each issued and outstanding share of Series A Preferred Stock into 80 shares of non-voting common stock, without any further action on the part of any holder of shares of Series A Preferred Stock, with shares of non-voting common stock issued upon the conversion of Series A Preferred Stock being convertible into shares of voting common stock in accordance with the provisions of the Amended and Restated Certificate of Incorporation under certain circumstances. The Amended and Restated Certificate of Incorporation that is subject to the shareholder approval under the Charter Proposal includes the required provisions related to the authorized capital stock and the mandatory conversion of shares of Series A Preferred Stock into shares of non-voting common stock, as described above. In addition, the Certificate of Amendment that designated the rights of Series A Preferred Stock provides that holders of shares of issued and outstanding Series A