Company: WKSP
Filing Date: 2025-04-28
Form Type: DEF 14C
Source: 0001641172-25-006481
Chunk: 5

Company: Worksport Ltd
Filing Date: 2025-04-28
Form: DEF 14C
Chunk 5
---
 a means of obtaining additional capital for use in our business and operations, and issuance as part or all of the consideration required to be paid by us for acquisitions of other businesses or assets. Notwithstanding the foregoing, we have no obligation to issue such additional shares and there are no plans, proposals or arrangements currently contemplated by us that would involve the issuance of the additional shares to acquire another company or its assets, or for any other corporate purpose stated.

Principal Effects of the Increase in Authorized Shares

The Company’s stockholders will not realize any dilution in their ownership or voting rights as a result of the increase in authorized shares of our Common Stock and preferred stock, but will experience dilution to the extent additional shares are issued in the future.

Common Stock

Having an increased number of authorized but unissued shares of our Common Stock would allow us to take prompt action with respect to corporate opportunities that develop, without the delay and expense of convening a special meeting of stockholders for the purpose of approving an increase in our capitalization. The issuance of additional shares of our Common Stock may, if such shares are issued at prices below what current stockholders’ paid for their shares, reduce stockholders’ equity per share and dilute the value of current stockholders’ shares. It is not the present intention of the Board to seek stockholder approval prior to any issuance of shares of our Common Stock that would become authorized by the amended Articles of Incorporation unless otherwise required by law or regulation. Frequently, opportunities arise that require prompt action, and it is the belief of the Majority Stockholder that the delay necessitated for stockholder approval of a specific issuance could be to the detriment of us and our stockholders.

When issued, the additional shares of our Common Stock authorized by the amended Articles of Incorporation will have the same rights and privileges as the shares of our Common Stock currently authorized and outstanding. Holders of our Common Stock have no preemptive rights and, accordingly, stockholders would not have any preferential rights to purchase any of the additional shares of our Common Stock when such shares are issued.

Preferred Stock

The availability of a larger number of authorized and unissued preferred stock will allow us a greater ability in structuring future financings or strategic transactions, specifically transactions that involve securities with liquidation preferences or other rights, without the delay and expense of seeking further stockholder approval to increase our capitalization. The issuance of additional shares of preferred stock may adversely affect the rights of existing holders of Common Stock. If a series of preferred stock is convertible into Common Stock