Document:

ex_126529.htm

Exhibit 4.1

 

	RIGHTS CERTIFICATE #:	NUMBER OF RIGHTS:

   

THE TERMS AND CONDITIONS OF THE RIGHTS OFFERING SET FORTH IN THE COMPANY’S PROSPECTUS DATED [●], 2018 (THE “PROSPECTUS”) AND ARE INCORPORATED HEREIN BY REFERENCE. COPIES OF THE PROSPECTUS ARE AVAILABLE UPON REQUEST FROM BROADRIDGE CORPORATE ISSUER SOLUTIONS, INC., THE SUBSCRIPTION AGENT.

 

CLEARONE, INC.

Incorporated under the laws of the State of Delaware

 

NON-TRANSFERABLE SUBSCRIPTION RIGHTS CERTIFICATE

 

Evidencing non-transferable Subscription Rights to Purchase Shares of Common Stock of

CLEARONE, INC.

 

Subscription Price: $[●] per Share

 

THE SUBSCRIPTION RIGHTS WILL EXPIRE IF NOT EXERCISED ON OR BEFORE 5:00 P.M., EASTERN STANDARD TIME, ON [●], 2018, UNLESS EXTENDED BY THE COMPANY

 

REGISTERED OWNER:

 

THIS CERTIFIES THAT the registered owner whose name is inscribed hereon is the owner of the number of nontransferable subscription rights (“Rights”) set forth above. Each Right entitles the holder thereof to subscribe for and purchase [●] shares of common stock, with a par value of $0.001 per share (“Common Stock”), of ClearOne, Inc., a Delaware corporation, at a subscription price of $[●] per share of Common Stock (the “Basic Subscription Right”), pursuant to a rights offering (the “Rights Offering”), on the terms and subject to the conditions set forth in the Prospectus. If you exercise your Basic Subscription Right in full and other shareholders do not fully exercise their Basic Subscription Right, we will grant you the right to purchase the same number of shares of Common Stock that you may acquire pursuant to the exercise of your basic subscription right, at the same subscription price of $[●] per share, additional shares of Common Stock that remain unsubscribed at the expiration of the Rights Offering (the “Over-Subscription Right”). The Over-Subscription Right will be available only to shareholders who exercise their Basic Subscription Right in full. The Over-Subscription Right will be subject to availability and pro rata allocation of shares among shareholders exercising their Over-Subscription Right. . The Rights represented by this Subscription Rights Certificate may be exercised by completing the appropriate forms on the reverse side hereof and by returning the full payment of the subscription price for each share of Common Stock. If the subscriber attempts to exercise its Over-Subscription Right and the Company is unable to issue the subscriber the full amount of shares of Common Stock requested, the subscription agent will return to the subscriber any excess funds submitted promptly, without interest or penalty.

 

This Subscription Rights Certificate is not valid unless countersigned by Broadridge Corporate Issuer Solutions, Inc., the subscription agent.

 

Witness the seal of ClearOne, Inc. and the signatures of its duly authorized officers.

 

Dated: [●], 2018

 

	 	 	 	 
	
			Zeynep Hakimoglu, President and Chief Executive Officer

				 	
			Narsi Narayanan, Senior Vice President of Finance

			(Principal Financial and Principal Accounting Officer)

				 

 

	
			BROADRIDGE CORPORATE ISSUER SOLUTIONS, INC.

			

 

	By:	 	 
	Name:	 	 
	Title:	 	 

 

 

 

 

DELIVERY OPTIONS FOR SUBSCRIPTION RIGHTS CERTIFICATE

 

Delivery other than in the manner or to the addresses listed below will not constitute valid delivery.

 

	
			By Mail:

			Broadridge Corporate Issuer Solutions, Inc.

			Attn: BCIS Re-Organization Dept.

			P.O. Box 1317

			Brentwood, NY 11717

				
			By Hand or Overnight Courier Excluding U.S. Postal Service:

			Broadridge Corporate Issuer Solutions, Inc.

			Attn: BCIS IWS

			51 Mercedes Way

			Edgewood, NY 11717

			

 

DO NOT SEND THIS RIGHTS CERTIFICATE DIRECTLY TO CLEARONE, INC.

 

PLEASE PRINT ALL INFORMATION CLEARLY AND LEGIBLY

 

FORM 1-EXERCISE OF RIGHTS

 

The registered holder of this Subscription Rights Certificate is entitled to exercise the number of Rights shown in the upper right hand corner of this Subscription Rights Certificate and may subscribe for additional shares of Common Stock upon the terms and conditions specified in the Prospectus. To subscribe for shares pursuant to your Basic Subscription Right, please complete lines (a) and (c) and sign under Form 3 below. To subscribe for shares pursuant to your Over-Subscription Right, please also complete line (b) and sign under Form 3 below. To the extent you subscribe for more shares than you are entitled under either the Basic Subscription Right or the Over-Subscription Right, you will be deemed to have elected to purchase the maximum number of shares for which you are entitled to subscribe under the Basic Subscription Right or Over-Subscription Right, as applicable. You cannot exercise your Over-Subscription Right unless you have exercised your Basic Subscription Right in full.

 

(a) EXERCISE OF BASIC SUBSCRIPTION RIGHT:

 

	
			I apply for

				 	
			shares

				
			x

				
			$

				 	
			=

				
			$

				 
	 	
			No. of new shares

				 	 	 	
			Subscription price

				 	 	
			Amount enclosed

			

 

(b) EXERCISE OF OVER-SUBSCRIPTION RIGHT

 

If you have exercised your Basic Subscription Right in full and wish to subscribe for additional shares at the same subscription price of $[●] per share additional shares of Common Stock for which you are otherwise entitled to subscribe pursuant to your Over-Subscription Right:

 

	
			I apply for

				 	
			shares

				
			x

				
			$

				 	
			=

				
			$

				 
	 	
			No. of new shares

				 	 	 	
			Subscription price

				 	 	
			Amount enclosed

			

 

(c) Total Amount of Payment Enclosed $

 

METHOD OF PAYMENT (CHECK ONE)

 

	
			☐

				
			Cashier’s or certified check or bank draft drawn on a U.S. bank payable to Broadridge Corporate Issuer Solutions, Inc.;

			

 

	
			☐

				
			U.S. Postal money order; or

			

 

	
			☐

				
			wire transfer of immediately available funds directly to the account to the following account, with reference to the rights holder's name:

			

 

Routing number: 123000848

International/Swift code: USBKUS44IMT

Bank: U.S. Bank

800 Nicollet Mall

Minneapolis, MN 55402 United States

 

Beneficiary Account Name: Broadridge

Account Number: 153910728465

 

For Further Credit Name: ClearOne Inc

For Further Credit Account Number: 153910812483

 

 

 

 

FORM 2-DELIVERY TO DIFFERENT ADDRESS

 

If you wish for the Common Stock underlying your subscription rights, a certificate representing unexercised subscription rights or the proceeds of any sale of subscription rights to be delivered to an address different from that shown on the face of this Subscription Rights Certificate, please enter the alternate address below, sign under Form 3 and have your signature guaranteed under Form 4.

 

FORM 3-SIGNATURE

 

TO SUBSCRIBE: I acknowledge that I have received the Prospectus for this Rights Offering and I hereby irrevocably subscribe for the number of shares indicated above on the terms and conditions specified in the Prospectus.

 

	
			Signature(s):

				 	 

 

IMPORTANT: The signature(s) must correspond with the name(s) as printed on the reverse of this Subscription Rights Certificate in every particular, without alteration or enlargement, or any other change whatsoever.

 

FORM 4-SIGNATURE GUARANTEE

 

This form must be completed if you have completed any portion of Forms 2 or 3.

 

	
			Signature Guaranteed:

				 	 
	 	
			(Name of Bank or Firm)

				 
	 	 	 
	
			By:

				 	 
	 	
			(Signature of Officer)

				 

 

IMPORTANT: The signature(s) should be guaranteed by an eligible guarantor institution (bank, stock broker, savings & loan association or credit union) with membership in an approved signature guarantee medallion program pursuant to Securities and Exchange Commission Rule 17Ad-15.

 

FOR INSTRUCTIONS ON THE USE OF THIS RIGHTS CERTIFICATE, CONSULT BROADRIDGE CORPORATE ISSUER SOLUTIONS, INC., THE SUBSCRIPTION AGENT, TOLL FREE AT +1 (855) 793-5068.ex_126530.htm

Exhibit 4.2

 

FORM OF LETTER TO STOCKHOLDERS WHO ARE

RECORD HOLDERS

 

CLEARONE, INC.

 

Up To [•] Shares of Common Stock

Issuable Upon the Exercise of Subscription Rights

[•], 2018

Dear Stockholder:

 

This letter is being distributed by CLEARONE, INC. (the “Company”) to all holders of record (the “Record Holders”) of the Company’s common stock, par value $0.001 per share (the “Common Stock”), as of 5:00 p.m., Eastern Standard Time, on [●], 2018 (the “Record Date”), in connection with the distribution in a rights offering (the “Rights Offering”), at no charge, of non-transferable subscription rights (the “Rights”) to subscribe for and purchase shares of Common Stock at a subscription price of $[●] per share (the “Subscription Price”). The Rights are described in the accompanying Prospectus, dated [●], 2018 (the “Prospectus”).

 

In the Rights Offering, up to an aggregate of [●] shares of Common Stock are being offered pursuant to the Prospectus. The Rights will expire if they are not exercised by 5:00 p.m., Eastern Standard Time, on [●], 2018 (the “Expiration Date”), unless you have used the guaranteed delivery procedures described in the Prospectus. Any Rights that are not exercised prior to 5:00 p.m., Eastern Standard Time, on the Expiration Date will expire, have no value and cease to be exercisable for shares of Common Stock.

 

As described in the Prospectus, each Record Holder will receive one (1) subscription right for each one (1) share of Common Stock owned of record as of 5:00 p.m., Eastern Standard Time, on the Record Date. Each Right gives the holder thereof the right to purchase from the Company [●] shares of Common Stock (the “Basic Subscription Right”) at the Subscription Price of $[●] per share. The Company will allocate to you, by reference to the number of shares you own on the record date, a pro-rata number of rights proportionate to the total number of rights offered. The Company will not issue fractional shares or cash in lieu of fractional shares in the Rights Offering. Instead, fractional shares resulting from the exercise of Basic Subscription Rights will be eliminated by rounding down to the nearest whole share.

 

In addition, holders of Rights who purchase all of the shares of Common Stock available to them pursuant to their Basic Subscription Right may also choose to subscribe (the “Over-Subscription Right”), at the same Subscription Price of $[●] per share, for a portion of any shares of Common Stock that other holders of Rights do not purchase through the exercise of their Basic Subscription Rights (the “Over-Subscription Shares”). If a sufficient number of Over-Subscription Shares are available, the Company will seek to honor all over-subscription requests in full. If, however, an insufficient number of Over-Subscription Shares are available to fully satisfy all Over-Subscription Right requests, the available shares will be prorated among those subscribers who exercise Over-Subscription Rights in proportion to their respective Basic Subscription Rights. The Company will not issue fractional shares through the exercise of the Over-Subscription Rights. Instead, fractional shares resulting from the exercise of the Over-Subscription Rights will be eliminated by rounding down to the nearest whole share.

 

The Rights are evidenced by subscription rights certificates (the “Subscription Rights Certificates”). Your Rights are nontransferable, meaning that you may not sell, transfer or assign your Subscription Rights Certificate to anyone else.

 

Enclosed are copies of the following documents:

 

	
			1.

				
			Prospectus;

			

 

	
			2.

				
			Subscription Rights Certificate; and

			

 

	
			3.

				
			A return envelope addressed to Broadridge Corporate Issuer Solutions, Inc. (the “Subscription Agent”).

			

 

 

 

 

Your prompt attention is requested. To exercise the Rights, you should complete and sign the Subscription Rights Certificate and forward it, with full payment of the aggregate Subscription Price that is required for all of the shares subscribed for pursuant to the Basic Subscription Right and the Over-Subscription Right, to the Subscription Agent, as indicated on the Subscription Rights Certificate. The Subscription Agent must receive the properly completed and duly executed Subscription Rights Certificate and full payment at or prior to 5:00 p.m., Eastern Standard Time, on the Expiration Date. Do not send the Subscription Rights Certificate or payment to the Company.

 

You will have no right to rescind your subscription after receipt of your payment of the Subscription Price, except as described in the Prospectus. Rights not exercised at or prior to 5:00 p.m., Eastern Standard Time, on the Expiration Date will expire.

 

ANY QUESTIONS OR REQUESTS FOR ASSISTANCE CONCERNING THE RIGHTS OFFERING SHOULD BE DIRECTED TO BROADRIDGE CORPORATE ISSUER SOLUTIONS, INC., THE SUBSCRIPTION AGENT, TOLL-FREE AT THE FOLLOWING TELEPHONE NUMBER: +1 (855) 793-5068.

 

Very truly yours,

 

ClearOne, Inc.

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