AMASS BRANDS amended the rights associated with its Series C Convertible Preferred Stock, now including updated provisions on conversion and redemption. This change potentially enhances the rights and protections of investors holding this stock.

Key Highlights

  • AMASS BRANDS has authorized a total of 35,000 shares of Series C Convertible Preferred Stock with a Par Value of $0.00001 each.
  • The company's amended terms include a 2% quarterly preferred return, which could escalate to 18% in default situations.
  • Changes to the Series C Convertible Preferred Stock clarify that holders cannot Demand Redemption except during Liquidation events.

AMASS BRANDS (NASDAQ: AMSS) has revamped the rights associated with its Series C Convertible Preferred Stock by filing an Amended and Restated Certificate of Designation. The amendment, effective August 19, 2026, was sanctioned by a majority of the Series C shareholders and the company’s Board of Directors. This adjustment alters several key provisions related to liquidation, conversion rights, and redemption conditions, enhancing the protections available to investors.

Amendment to Securityholder Rights

The newly established provisions in the Amended and Restated Certificate of Designation pertain to the 35,000 authorized shares of Series C Convertible Preferred Stock. Among the notable changes is the revision of liquidation event provisions, which offers clearer definitions and expectations for Series C shareholders during such events. The previous certificate was replaced entirely, allowing for comprehensive updates that respond to Shareholder concerns.

This thorough approach ensures that the interests of Series C investors are better protected moving forward.

Enhanced Liquidation Provisions

The amended rights now clarify the circumstances under which redemption can be required. Holders of Series C Preferred Stock no longer have the right to demand returns except in situations of actual liquidation, dissolution, or winding up of AMASS BRANDS. This shift aims to stabilize the company's Capital Structure during unforeseen events, potentially making it more appealing to investors concerned with liquidity risks.

Enhanced definitions and the removal of unnecessary restrictions could signal a more flexible approach toward financial management from AMASS BRANDS.

Revised Conversion and Interest Terms

The newly established series will accrue a preferred return at a rate of 2% each quarter, accumulating from the date of issuance. In circumstances classified as defaults, this rate can significantly increase to 18% per annum, emphasizing AMASS BRANDS' commitment to ensuring shareholder returns. The potential for high-interest yields during default situations provides an added incentive for investors to remain engaged with the company's securities, enhancing confidence in the Series C Preferred Stock investment.

Next Steps for Investors

Investors can anticipate that AMASS BRANDS will conduct additional transactions regarding its Series C Preferred Stock under the existing Securities Purchase Agreement. On August 19, 2026, the company requested the purchase of additional shares with an aggregate value of $2 million, signaling potential growth opportunities within its capital structure. Stakeholders will be keenly monitoring these developments as the company positions itself for future financial maneuvers, which may further influence the attractivity of investing in AMASS BRANDS securities.