Company: WKSP
Filing Date: 2025-04-28
Form Type: DEF 14C
Source: 0001641172-25-006481
Chunk: 6

Company: Worksport Ltd
Filing Date: 2025-04-28
Form: DEF 14C
Chunk 6
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 at a discount to the market price, significant dilution may occur upon conversion of the preferred stock into shares of Common Stock. In addition, liquidation preferences may entitle holders of preferred stock to receive payment prior to the holders of Common Stock in the event of a liquidation, dissolution or an asset sale.

When designated and issued, the additional shares of our preferred stock authorized by the amended Articles of Incorporation will have rights and privileges that may differ from those of the shares of our Common Stock currently authorized and outstanding and the shares of our preferred stock currently designated and outstanding, including, without limitation, the Series A Preferred Stock. The authorized preferred stock may be issued in one or more series, each with such designations, rights, preferences and limitations as may be determined by our Board without further stockholder approval, which may include, without limitation, dividend rights, liquidation preferences, voting rights, conversion rights and redemption privileges.

We filed an offering statement on Form 1-A with the SEC for a proposed Regulation A Tier 2 offering (the “Reg A Offering”) of up to 3,100,000 units at a price of $3.25 per unit, with each unit consisting of one share of Series C Preferred Stock and one warrant to purchase one share of Common Stock at $4.50 per share, through a placement agent in a best efforts offering. We do not intend to initiate the Reg A Offering until the Certificate of Amendment is effective. Other than the Reg A Offering, as of April 28, 2025, the Board has no plans to issue any shares of preferred stock and does not intend to seek additional stockholder approval for any such issuance unless otherwise required by law or regulation.

Potential Anti-Takeover Effects

Shares of our authorized and unissued Common Stock and preferred stock could be issued in one or more transactions that could make it more difficult, and therefore less likely, that any takeover of us could occur. Issuance of additional shares of our Common Stock or preferred stock could have a deterrent effect on persons seeking to acquire control. The Board also could, although it has no present intention of so doing, authorize the issuance of shares of our Common Stock or preferred stock to a holder who might thereby obtain sufficient voting power to assure that any proposal to effect certain business combinations or amendments to our Articles of Incorporation or Bylaws would not receive the required stockholder approval. Accordingly, the power to issue additional shares of our Common Stock and preferred stock could enable the Board to make it more difficult to replace incumbent directors