Company: ARTL
Filing Date: 2025-08-07
Form Type: DEF 14A
Source: 0001640334-25-001376
Chunk: 18

Company: ARTELO BIOSCIENCES, INC.
Filing Date: 2025-08-07
Form: DEF 14A
Chunk 18
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 the dates on which dividends will be paid;                                                                                                                                                                                                       |
| · | whether dividends on the Preferred Stock will be cumulative or noncumulative and, if cumulative, the dates from which dividends shall commence to accumulate;                                                                                    |
| · | any redemption or sinking fund provisions applicable to the Preferred Stock;                                                                                                                                                                     |
| · | designation of voting rights that may be senior or superior to those of held by holders of Common Stock; and/or                                                                                                                                  |
| · | any additional dividend, liquidation, redemption, sinking fund, ant-dilution rights, conversion rights, rights to participate in future financings, protective rights and other rights, restrictions and terms applicable to the Preferred Stock |

Impact on Holders of Common Stock

While the ability of the Board to issue shares of blank check preferred stock cannot be precisely determined unless and until the Board designates the rights, privileges, and preferences to attach to some or all of the authorized shares of blank check preferred stock, it is likely that any series of Preferred Stock so designated will have one or more material features that are superior to our shares of Common Stock. There are not currently any agreements of the company pursuant to which the Board would authorize and issue Preferred Stock and there are not currently any plans, discussions or negotiations to do so.

Effects of Blank Check Preferred Amendment

Due to the volatility of our Common Stock, the Board has discussed various measures that we can take, including a shareholder rights plan and the use of blank check preferred, to deal with potential threats of hostile takeovers. However, the proposal for the Blank Check Preferred Amendment was not done with the purpose or intention of using such shares for anti-takeover purposes, such as to oppose a hostile takeover attempt or to delay or prevent a change in control of the company that our Board does not support, however we could use the blank preferred shares for such purpose. Although the proposal to authorize the blank check preferred stock has not been prompted by the threat of any hostile takeover attempt (nor is the Board currently aware of any such attempts directed at the company), nevertheless, stockholders should be aware that the Blank Check Preferred Amendment could facilitate future efforts by us to deter or prevent changes in control of the company, including transactions in which stockholders of the company might otherwise receive a premium for their shares over then current market prices. However, the Board has a fiduciary duty to act in the best interests of our stockholders at all times.

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Although the Blank Check Preferred Amendment is not motivated by anti-takeover concerns and is not