SEC Filing Document

Company: Ambitious Entertainment, Inc.
Ticker: 
CIK: 1900851
Filing Type: S-1
Document Type: S-1
Date Filed: 2026-05-15
Accession Number: 0001493152-26-023581
Exchange: 
SIC Code: 7812
SIC Description: Services-Motion Picture & Video Tape Production
URL: https://www.sec.gov/Archives/edgar/data/1900851/000149315226023581/forms-1.htm

Chunk 36 of 57
Word Count: 1405
Character Count: 8957

Document Content:

the Series A preferred stock, each share of Series A preferred stock accrues cumulative dividends at a rate of 10% per annum, payable solely in-kind as additional shares of Series A preferred stock. Conversion Each share of Series A is convertible into one share of common stock at the option of the holder at any time at a conversion price of $3.20 per share (the “Conversion Price”), subject to equitable adjustment for stock splits, reverse stock splits, stock dividends, recapitalizations, or similar transactions. Unless approved by the stockholders of the Company, conversion of shares of Series A preferred stock is limited such that the aggregate number of shares of common stock issuable upon conversion cannot exceed 19.99% of number shares of common stock outstanding. Beneficial Ownership Limitation Conversion is subject to a 4.99% beneficial ownership limitation (which may be increased to 9.99% upon 61 days’ written notice). IPO Leak-Out Conversion

After
the consummation of this offering, if the shares of common stock trades at or above $4.25 per share for at least 10 consecutive trading
days, holders of shares of Series A preferred stock may convert up to 25% of their then-outstanding shares.

Qualified
IPO True-Up

six months after this offering, the 10-day volume-weighted average price of shares of Common Stock (“VWAP”) is less than
the initial public offering price per share, the Company will adjust the conversion ratio on a one-time basis such that holders receive
additional shares of Common Stock equal to the quotient obtained by dividing the initial public offering by the VWAP multiplied by the
number of shares otherwise issuable.

Price
Protection

Except
for Exempt Issuances, if the Company issues securities at an price less than the Conversion Price, the Conversion Price shall be reduced
to the lesser of the Floor Price or the new issuance price. “Floor Price” means 20% of the Minimum Price (as such term is defined by the rules and regulations of
the Nasdaq Stock Market LLC, Rule 5635(d)(a)(A)) or such lower amount as permitted, from time to time, by the Principal Market, subject
to adjustments for share splits, share dividends, share combinations, recapitalizations or other similar events.

Liquidation
Preference

Upon
a liquidation of the Company, holders of Series A preferred stock are entitled to receive, prior to distributions to junior securities
but pari passu with any securities created specifically ranking on parity with the Series A preferred stock, an amount equal to the Conversion Price (the “Liquidation Preference”).  After
payment of the Liquidation Preference, holders receive no further distribution and remaining funds are distributed to holders of shares
of common stock.

Participation
in Future Financings

Holders
of outstanding Series A preferred stock have the right, for a period of six months following the initial issuance of Series
A preferred stock, to participate in up to an aggregate of 30% of any subsequent financing involving the issuance of shares of common stock or
common stock equivalents for cash consideration in a transaction exempt from the registration requirements of the Securities Act, on
the same terms, conditions, and price as other participants in such financing.

Triggering
Events

Upon
the occurrence of certain events, each holder may, at its option, convert all or any portion of its Series A preferred stock into Common Stock
at a price which is the lesser of (i) the Conversion Price or (ii) subject to approval of the stockholders of the Company, 70% of the
lowest closing price for the five trading days prior to the date of the conversion notice.

Options

of the date of this prospectus, there were no outstanding stock options pursuant to our equity plan.

Anti-Takeover
Matters

Anti-Takeover
Effects of Certain Provisions of Nevada Law

are subject to Section 78.438 of the Nevada Revised Statutes (NRS), an anti-takeover law. In general, Section 78.438 prohibits a Nevada
corporation from engaging in any business combination with any interested stockholder for a period of two years following the date that
the stockholder became an interested stockholder, unless prior to that date, the board of directors of the corporation approved either
the business combination or the transaction that resulted in the stockholder becoming an interested stockholder, or if after the date
that the stockholder becomes an interested stockholder the business combination is approved by the board of directors and by 60% of the
voting power of all disinterested stockholders at either an annual or special meeting of the stockholders of the corporation. Section
78.439 provides that business combinations after the two-year period following the date that the stockholder becomes an interested stockholder
may also be prohibited unless either approved by the corporation’s directors before the stock acquisition, or by a majority of
the disinterested stockholders or unless the price and terms of the transaction meet other criteria set forth in the statute.

Section
78.416 of the NRS defines “business combination” to include the following:

●	any
merger or consolidation involving the corporation and the interested stockholder or any other corporation which is an affiliate or
associate of the interested stockholder;

●	any
sale, transfer, pledge or other disposition of the assets of the corporation involving the interested stockholder or any affiliate
or associate of the interested stockholder if the assets transferred have a market value equal to 5% or more of all of the assets
of the corporation or 5% or more of the value of the outstanding shares of the corporation or represent 10% or more of the earning
power of the corporation;

○	subject
to certain exceptions, any transaction that results in the issuance or transfer by the corporation of any stock of the corporation
to an interested stockholder, with a market value of 5% or more of the value of the outstanding shares of the corporation;

○	the
adoption of a plan of liquidation proposed by or under any arrangement with the interested stockholder or any affiliate or associate
of the interested stockholder;

○	any
transaction involving the corporation that has the effect of increasing the proportionate share of the stock of any class or series
of voting shares of securities convertible into voting shares of the corporation beneficially owned by the interested stockholder
or any affiliate or associate of the interested stockholder; or

○	the
receipt by the interested stockholder or any affiliate or associate of the interested stockholder of the benefit, except proportionately
as a stockholder of the corporation, of any loans, advances, guarantees, pledges or other financial benefits provided by or through
the corporation.

general, Section 78.423 of the NRS defines an interested stockholder as any entity or person beneficially owning, directly or indirectly,
10% or more of the outstanding voting stock of the corporation and any entity or person affiliated with or controlling or controlled
by any of these entities or persons.

Control
Share Acquisitions

Sections
78.378 through 78.3793 of the NRS limit the voting rights of certain acquired shares in a corporation. The provisions apply to any acquisition
of outstanding voting securities of a Nevada corporation that has 200 or more stockholders, at least 100 of which are Nevada residents,
and conducts business in Nevada (an “issuing corporation”) resulting in ownership of one of the following categories of an
issuing corporation’s then outstanding voting securities: (i) twenty percent or more but less than thirty-three percent; (ii) thirty-three
percent or more but less than fifty percent; or (iii) fifty percent or more. The securities acquired in such acquisition are denied voting
rights unless a majority of the security holders approve the granting of such voting rights. Unless an issuing corporation’s articles
of incorporation or bylaws then in effect provide otherwise: (i) voting securities acquired are also redeemable in part or in whole by
an issuing corporation at the average price paid for the securities within 30 days if the acquiring person has not given a timely information
statement to an issuing corporation or if the stockholders vote not to grant voting rights to the acquiring person’s securities,
and (ii) if outstanding securities and the security holders grant voting rights to such acquiring person, then any security holder who
voted against granting voting rights to the acquiring person may demand the purchase from an issuing corporation, for fair value, all
or any portion of his securities. These provisions do not apply to acquisitions made pursuant to the laws of descent and distribution,
the enforcement of a judgment, or the satisfaction of a security interest, or made in connection with certain mergers or reorganizations.

Recent
Amendment to Nevada Law