SEC Form 4 · accession 0001580695-17-000313

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

Mar 31, 2017

Accepted (ET)

Jul 12, 2017 · 3:33 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 Stock^F1,F2,F3	$1.56	Mar 31, 2017	J	500	A	Mar 31, 2017	—	Common Stock	500	33,782	D
Series B1 Preferred Stock^F1,F2,F3	$1.56	Jun 30, 2017	J	761	A	Jun 30, 2017	—	Common Stock	761	34,543	D

Explanation of responses

F1Mr. Carlson was issued 500 shares of Series B1 Preferred Stock in-kind effective on March 31, 2017, in lieu of $780 of dividends which accrued on Series B1 Preferred Stock shares held by Mr. Carlson. Mr. Carlson was issued 761 shares of Series B1 Preferred Stock in-kind effective on June 30, 2017, in lieu of $1,188 of dividends which accrued on Series B1 Preferred Stock shares held by Mr. Carlson. 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.
F2The 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 (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.
F3The 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 ($1.56) 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.