||Entry into a Definitive Material Agreement |
On February 28, 2018, Stereotaxis, Inc.
(the Company) entered into a Consent and Amendment with the holders of a majority of the shares of common stock issuable upon exercise of the outstanding warrants (the SPA Warrants) issued pursuant to the Stock Purchase
Agreement dated September 26, 2016, by and among the Company and certain institutional and accredited investors named therein. Pursuant to the terms of the SPA Warrants, the provisions of the Consent and Amendment are binding on all holders of
the SPA Warrants.
The Consent and Amendment amends and restates the SPA Warrants to provide for a reduction in the exercise price of the
SPA Warrants from $0.70 per share to $0.28 per share for a period that commenced at 8:00 a.m. (Eastern Standard Time) on March 1, 2018 and ended at 1:00 p.m. (Eastern Standard Time) on March 5, 2018 (the Restricted Exercise
Period), provided that (i) exercises of the SPA Warrants at the reduced exercise price will only be effected if the aggregate exercise price for all SPA Warrants exercised during the Restricted Exercise Period is at least $6,000,000 (the
Exercise Condition), (ii) cashless exercise is not permitted during the Restricted Exercise Period and (iii) the exercising holder is required to enter into a lock-up agreement with the
Company agreeing not to sell the SPA Warrants or the shares received on exercise of the SPA Warrants (the Warrant Shares) for a period of 18 months following March 12, 2018. The Consent and Amendment also provides that the
limitations on beneficial ownership of the Companys common stock set forth in the SPA Warrants will not apply to Warrant Shares issued to a holder upon exercises of such holders SPA Warrants during the Restricted Exercise Period, and
eliminates the right of holders to require the Company to redeem their SPA Warrants in exchange for cash in certain circumstances.
Consent and Amendment also releases and waives (i) any registration default, and (ii) the requirement or obligation to make any registration delay payments or other liabilities or damages under the Registration Rights Agreement, dated
September 26, 2016 and entered into in connection with the Securities Purchase Agreement referred to above, in the event the Company determines, exercising its reasonable judgment, that it is necessary to file a new registration statement (or
post-effective amendment to the Registration Statement on Form S-1 (File No. 333- 214255)) to register for resale the shares of common stock issuable upon exercise
of the SPA Warrants as amended, provided that any such new registration statement (or post-effective amendment) shall be filed by the Company no later than 30 days after the date of the Consent and Amendment, and shall have become effective no later
than 60 days thereafter.
The foregoing description is qualified in its entirety by the terms of the Consent and Amendment, which is filed
as Exhibit 10.1 hereto and incorporated herein by reference.
||Results of Operations and Financial Condition |
On March 6, 2018, the Company issued
a press release (the Earnings Press Release) setting forth its financial results for the fourth quarter of fiscal year 2017 and the year ended December 31, 2017. A copy of the Earnings Press Release is being filed as Exhibit 99.1
hereto, and the statements contained therein are incorporated by reference herein.