Company: IMG
Filing Date: 2025-02-25
Form Type: DEF 14C
Source: 0001493152-25-008207
Chunk: 3

Company: CIMG Inc.
Filing Date: 2025-02-25
Form: DEF 14C
Chunk 3
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 the Company will have to issue up to 20,576,923 shares of common stock underlying the convertible notes and warrants (the “Warrants”) to purchase up to an aggregate of 25,641,023 shares of the Company’s common stock, representing approximately 430% of the total issued and outstanding common stock of the Company as of February 10, 2025, which is more than 20% of its issued and outstanding common stock, and 81.1% on a post-issuance basis.

Under Nasdaq Listing Rule 5635(c), shareholder approval is required prior to the issuance of securities when a stock option or purchase plan is to be established or materially amended or other equity compensation arrangement made or materially amended, pursuant to which stock may be acquired by officers, directors, employees, or consultants, except in certain circumstances. Under Nasdaq Listing Rule 5635(d), shareholder approval is required prior to a 20% Issuance at a price that is less than the Minimum Price. “Minimum Price” means a price that is the lower of: (i) the Nasdaq Official Closing Price (as reflected on Nasdaq.com) immediately preceding the signing of the binding agreement; or (ii) the average Nasdaq Official Closing Price of the common stock (as reflected on Nasdaq.com) for the five trading days immediately preceding the signing of the binding agreement. “20% Issuance” means a transaction, other than a public offering as defined in IM-5635-3, involving the sale, issuance or potential issuance by the Company of common stock (or securities convertible into or exercisable for common stock), which alone or together with sales by officers, directors or substantial shareholders of the Company, equals 20% or more of the common stock or 20% or more of the voting power outstanding before the issuance.

As a result of the foregoing resolutions, on a date which is at least 20 calendar days after the date of mailing this Information Statement to its stockholders, the Company will comply with Nasdaq Listing Rule 5635, as these resolutions constitute stockholder approval for the Company to issue shares.

Dissenters’ Right of Appraisal

Under the NRS, the Company’s stockholders are not entitled to dissenters’ rights with respect to the proposed actions and nor have we provided for appraisal rights in our certificate of incorporation or bylaws..

Vote Required

The vote, which was required to approve the above Authorizations, was the affirmative vote of the holders of a majority