Company: BKTI
Filing Date: 2025-04-24
Form Type: DEF 14A
Source: 0001437749-25-012867
Chunk: 56

Company: BK Technologies Corp
Filing Date: 2025-04-24
Form: DEF 14A
Chunk 56
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 entered into a Stock Purchase Agreement, pursuant to which East West purchased 77,520 shares of the Company’s common stock with a value equal to $1,000,000. The number of shares of common stock was determined based upon a price per share of $12.90, which was equal to the average of the closing price of the Company’s common stock on the NYSE American for the 30 most recent trading days prior to November 6, 2023, rounded up to the nearest whole number of shares. Additionally, East West purchased a five-year warrant to purchase up to 135,300 shares of the Company’s common stock at an exercise price per share of $15.00. The consideration for the warrant was payment equal to (a) $1,000,000, minus (b) (i) the amount of any outstanding accounts payable by Company to East West and (ii) the amount of any excess or obsolete inventory of Company currently held by East West (solely to the extent not otherwise taken into account pursuant to the MSA or any other agreement between the Company and East West). The payment included a $950,000 reduction in accounts payable and $50,000 in cash. Following these transactions, East West is a greater than 5% holder of the Company’s common stock. During the years ended December 31, 2024 and 2023, the Company paid $20.6 million and $6.9 million, respectively, to East West. As of December 31, 2024 and 2023, amounts payable due to East West were $4.2 million and $0.8 million, respectively.

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Fundamental Global GP, LLC (“FG”)

FG, together with its affiliates, was previously a greater than 5% holder of our common stock during 2024. Mr. Cerminara, a former member of our Board of Directors, served as Chief Executive Officer, Co-Founder and Partner of FG. We previously had an investment in a limited partnership, FGI 1347 Holdings, LP, which was established for the purpose of investing in securities and of which we were the sole limited partner until September 2022. In September 2022, the Company exchanged the investment in FGI 1347 Holdings, LP for an investment in Series B common membership interests of FG Financial Holdings, LLC (“FG Holdings”). Affiliates of FG, including Mr. Cerminara, serve as the investment