Company: ARTL
Filing Date: 2025-08-07
Form Type: DEF 14A
Source: 0001640334-25-001376
Chunk: 17

Company: ARTELO BIOSCIENCES, INC.
Filing Date: 2025-08-07
Form: DEF 14A
Chunk 17
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 issuance of Preferred Stock with voting or conversion rights that could dilute the voting power or rights of the holders of Common Stock. In addition, the issuance of Preferred Stock could, among other things, have the effect of delaying, deferring or preventing a change in control of the company and might harm the market price of our Common Stock.

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Rights of Blank Check Preferred Stock

The proposed Blank Check Preferred Amendment will not have any effect on the par value per share of our Preferred Stock. However, the creation of a series of Preferred Stock and issuance of such shares of Preferred Stock will affect holders of our Common Stock. We currently only have one class of stock, Common Stock issued and outstanding. All of the holders of Common Stock have the same rights. As discussed above, if the Blank Check Preferred Amendment is approved by the stockholders, the Board will have the power and discretion to specify the rights, preferences and restrictions of series of Preferred Stock, subject to any Required Approval. Such rights associated with the Preferred Stock will not be identical to the rights associated with our Common Stock. If our Board issues shares of Preferred Stock, existing stockholders of Common Stock will not have any preferential rights to purchase any newly authorized shares of Preferred Stock solely by virtue of their ownership of shares of our Common Stock. In addition, the rights of holders of preferred shares may be superior to the rights of holders of our Common Stock. Holders of Preferred Stock will be entitled to receive, when, as, and if declared by our Board, the dividends, whether cash or in-kind or in shares of additional securities of the company, at the rates and on the dates established by such series of Preferred Stock. Dividend rates may be fixed or variable or both. Different series of Preferred Stock may be entitled to dividends at different dividend rates or based upon different methods of determination. The Board could authorize the issuance of Preferred Stock with voting or conversion rights that are superior to the rights of holders of Common Stock and issuance of such Preferred Stock could dilute the voting power or rights of the holders of Common Stock. The particular terms of any series of Preferred Stock may among others terms include the following which is not an exhaustive list:

| · | the number of shares of the Preferred Stock being designated;                                                                                                                                                                                    |
| · | the title and liquidation preference per share of the Preferred Stock;                                                                                                                                                                           |
| · | the purchase price of the Preferred Stock;                                                                                                                                                                                                       |
| · | the dividend rate or method for determining the dividend rate;                                                                                                                                                                                   |
| · |