SEC Form 4 · accession 0001580695-16-000438
Vertex Energy Inc. · VTNR
Statement of changes in beneficial ownership, as filed. Original on EDGAR ↗
Reporting owner
Chris Carlson
Officer — CFO & Secretary
Period of report
May 13, 2016
Accepted (ET)
May 17, 2016 · 8:20 pm EDT
Rule 10b5-1 plan
unknown — predates the checkbox
Issuer CIK
0000890447
Table I — non-derivative securities
| Security | Date | Code | Shares | Price | A/D | Owned after | D/I | Nature of ownership |
|---|---|---|---|---|---|---|---|---|
| Common Stock | holding | — | — | — | 772,335 | D |
Table II — derivative securities
| Security | Conv. / exercise price | Date | Code | Shares | A/D | Exercisable | Expires | Underlying | Underlying shares | Owned after | D/I |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Series B1 Preferred StockF3,F1,F2 | $1.56 | May 13, 2016 | P | 32,052 | A | May 13, 2016 | — | Common Stock | 32,052 | 32,052 | D |
| Common Stock Purchase WarrantsF3 | $1.53 | May 13, 2016 | P | 8,013 | A | Nov 14, 2021 | Nov 13, 2021 | Common Stock | 8,013 | 19,743 | D |
Explanation of responses
- F1The Series B1 Preferred Stock (including accrued and unpaid dividends) is convertible into shares of the Issuer's common stock at the holder's option at any time at the Unit Price (see Note 3, initially a one-for-one basis). If the Issuer's common stock trades at or above $3.90 per share (250% of the Unit Price) for a period of 20 consecutive trading days at any time following the earlier of (a) the effective date of a resale registration statement the Issuer is required to file to register the underlying shares of common stock, or (b) November 13, 2016, the Issuer may at such time force conversion of the Series B1 Preferred Stock (including accrued and unpaid dividends) into common stock of the Issuer.
- F2The Series B1 Preferred Stock has no expiration date; however, the Issuer has the option to redeem the Series B1 Preferred Stock at 110% of the Unit Price (defined in Note 3) plus any accrued and unpaid dividends on such Series B1 Preferred Stock redeemed, at any time beginning on June 20, 2017 and the Issuer is required to redeem the Series B1 Preferred Stock at the Unit Price plus any accrued and unpaid dividends on June 24, 2020. Notwithstanding either of the foregoing, the Series B1 Preferred Stock may not be redeemed unless and until amounts outstanding under the Issuer's senior credit facility have been paid in full.
- F3On May 13, 2016, Mr. Carlson, purchased 32,052 units as an investor named in the May 10, 2016 Unit Purchase Agreement entered into with the Issuer, with each unit (the "Unit"), consisting of (i) one share of Series B1 Preferred Stock and (ii) one warrant to purchase one-quarter of a share of common stock of the Company. The Units were sold at a price of $1.56 per Unit (the "Unit Price") or $50,000 in aggregate. The terms of the Series B1 Preferred Stock are described in greater detail in the Current Report filed by the Issuer on May 13, 2016.