UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

 PURSUANT TO SECTION 13 OR 15(D) OF

THE SECURITIES EXCHANGE ACT OF 1934

 

Date of Report (Date of earliest event reported): May 20, 2020

 

  HELIX TECHNOLOGIES, INC.  
  (Exact name of registrant as specified in its charter)  

 

Delaware   000-55722   81-4046024
(State or other jurisdiction of
incorporation)
  (Commission File Number)   (IRS Employer
ID Number)

 

5300 DTC Parkway, Suite 300

Greenwood Village, CO 80111

(Address of principal executive offices)

 

Registrant’s telephone number, including area code (720) 328-5372

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

Title of each class   Trading Symbol(s)   Name of each exchange on which registered
N/A   N/A   N/A

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company ☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

 

 

 

Item 1.01. Entry into a Material Definitive Agreement.

On June 1, 2020 and June 2, 2020, Helix Technologies, Inc., a Delaware corporation (the “Company”), entered into subscription agreements (the “June Subscription Agreements”) with a total of 23 accredited investors (the “June Investors”). Pursuant to the June Subscription Agreements, the June Investors purchased 7,527,157 shares of the Company’s common stock, par value $0.001 per share (“Common Stock”), for an aggregate purchase price of $827,987, or $0.11 per share.

Previously, on May 20, 2020 and May 21, 2020, the Company entered into subscription agreements (the “May Subscription Agreements,” and together with the June Subscription Agreements, the “Subscription Agreements”) with a total of three accredited investors (the “May Investors,” and together with the June Investors, the “Investors”). Pursuant to the May Subscription Agreements, the May Investors purchased 3,636,364 shares of Common Stock, for an aggregate purchase price of $400,000, or $0.11 per share.

The foregoing descriptions of the Subscription Agreements do not purport to be complete and are subject to, and qualified in their entirety by, the full text of the Subscription Agreements, the form of which is attached hereto as Exhibit 10.55 and incorporated herein by reference 

Item 3.02. Unregistered Sales of Equity Securities.

The applicable information set forth in Item 1.01 of this Current Report on Form 8-K is incorporated by reference in this Item 3.02.

The shares of Common Stock issued pursuant to the Subscription Agreements have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), and are “restricted securities” as that term is defined by Rule 144 promulgated under the Securities Act.

The Company issued the shares of Common Stock to the Investors in reliance upon the exemption from registration provided by Section 4(a)(2) of the Securities Act and Rule 506 of Regulation D promulgated thereunder. Each Investor represented to the Company that it was an “accredited investor” as defined in Rule 501(a) under the Securities Act and that such Investor’s shares of Common Stock were being acquired for investment purposes. 

Item 3.03 Material Modification to Rights of Security Holders.

The applicable information set forth in Item 1.01 of this Current Report on Form 8-K is incorporated by reference in this Item 3.03.

Pursuant to the provisions of the Company’s Certificate of Incorporation, the issuance of shares of Common Stock to the Investors pursuant to the Subscription Agreements at a purchase price of $0.11 per share resulted in an adjustment of the conversion prices of the Company’s Series A Preferred Stock, par value $0.001 per share (the “Series A Preferred Stock”), and the Company’s Series B Preferred Stock, par value $0.001 per share (the “Series B Preferred Stock”), as follows:

· the conversion price for the Series A Preferred Stock was decreased from $0.3253815 to $0.3110812, resulting in the number of shares of Common Stock issuable upon conversion increasing from 1,000,000 to 1,045,970; and

· the conversion price for the Series B Preferred Stock was decreased from $0.3253815 to $0.3110812, resulting in the number of shares of Common Stock issuable upon conversion increasing from 13,784,201 to 14,417,856.

 

 

 

Item 9.01. Financial Statements and Exhibits.

 

  (d) Exhibits

 

     

Exhibit No.

 

Description

   
10.55   Form of Subscription Agreement.

 

 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

  HELIX TECHNOLOGIES, INC.
   
Date: June 5, 2020 /s/ Scott Ogur
  Scott Ogur
  Chief Financial Officer

 

 

Exhibit 10.55

 

SUBSCRIPTION AGREEMENT

 

ACCREDITED INVESTORS ONLY

 

Form of Subscription Agreement

 

SECURITIES SUBJECT HERETO HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE “ACT”), OR ANY STATE SECURITIES LAWS AND NEITHER SUCH SECURITIES NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD, PLEDGED, ASSIGNED OR OTHERWISE TRANSFERRED UNLESS (1) A REGISTRATION STATEMENT WITH RESPECT THERETO IS EFFECTIVE UNDER THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS, OR (2) THE COMPANY RECEIVES AN OPINION OF COUNSEL TO THE OWNER OF SUCH SECURITIES, WHICH COUNSEL AND OPINION ARE REASONABLY SATISFACTORY TO THE COMPANY, THAT SUCH SECURITIES, OR INTEREST THEREIN, MAY BE OFFERED, SOLD, PLEDGED, ASSIGNED OR TRANSFERRED IN THE MANNER CONTEMPLATED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT OR APPLICABLE STATE SECURITIES LAWS.

 

HELIX TCS, INC.

A Delaware Corporation

 

 

SUBSCRIPTION AGREEMENT AND REPRESENTATIONS

FOR

___________ SHARES OF COMMON STOCK @ $0.11 PER SHARE

 

OFFERING PRICE: $0.11 PER SHARE

WITH A MINIMUM PURCHASE OF $__________ (__________ SHARES) PER SUBSCRIBER

 

May __, 2020

 

To: Helix TCS, INC.

 

Ladies and Gentlemen:

 

I, the undersigned, understand that Helix TCS, Inc. a Delaware Corporation (the “Company”) is offering shares of common stock of Helix TCS, Inc. (the “Shares”). Each Share is offered for $0.11, and the minimum subscription is for $_________.

I hereby offer to purchase ____________ Share(s) and, upon acceptance by you, agree to become a shareholder of the Company and to contribute to the Company as set forth herein. In order to induce the Company to accept my offer, I advise you as follows:

(1) Receipt of copies of the business plan and such other documents as I have requested. I hereby acknowledge that I have received the business plan and other relevant documents (as may be supplemented from time to time) relating to the Company. I acknowledge I have reviewed and understand the Company’s filings with the U.S. Securities and Exchange Commission (the “SEC Reports”).

 

(2) Availability of Information. I hereby acknowledge that the Company has made available to me the opportunity to ask questions of, and receive answers from the Company and any other person or entity acting on its behalf, concerning the contents of the business plan, the SEC Reports and the information contained in the corporate documents and to obtain any additional information, to the extent the Company possesses such information or can acquire it without unreasonable effort or expense, necessary to verify the accuracy of the information provided by the Company and any other person or entity acting on its behalf.

(3) Representations and Warranties. I represent and warrant to the Company (and understand that it is relying upon the accuracy and completeness of such representations and warranties in connection with the availability of an exemption for the offer and sale of the shares from the registration requirements of applicable federal and state securities laws) that:

(A) RESTRICTED SECURITIES.

 

(1) I understand that the Shares have not been registered under the Securities Act of 1933, as amended (The Act), or any state securities laws.

 

(2) I understand that if my subscription offer is accepted and the Shares are sold to me, I cannot sell or otherwise dispose of the Shares unless they are registered under the Act or the state securities laws or exemptions therefrom are available (and consequently, that I must bear the economic risk of the investment for an indefinite period of time):

 

(3) I understand that the Company has no obligation now to register the shares under the Act or the State securities laws or obtain exemptions therefrom.

 

(4) I understand that the Company will restrict the transfer of the Securities in accordance with the foregoing representations.

 

(B) LEGEND.

 

I agree that any certificate representing the shares will contain and be endorsed with the following, or a substantially equivalent, LEGEND:

 

“This share certificate has been acquired pursuant to an investment representation by the holder and shall not be sold, pledged, hypothecated or donated, or otherwise transferred except upon the issuance to Company of a favorable opinion by its counsel and the submission to the Company of other evidence satisfactory to and as required by counsel to the Company; that any such transfer will not violate the Securities Act of 1933, as amended, and applicable state securities laws.”

 

 

(C) AGE: CITIZENSHIP.

 

I am at least twenty-one years old and a citizen of the United States of America.

 

(D) ACCURACY OF INFORMATION.

 

All information which I have provided to the Company concerning my financial position and knowledge of financial and business matters is correct and complete as of the date set forth at the end hereof, and if there should be any material change in such information prior to acceptance of this subscription offer by the Company, I will immediately provide the Company with such information.

 

(E) OFFERING PROCEDURE.

 

I understand that this subscription offer is subject to each of the following terms and conditions:

 

(a) The Company may reject this subscription offer for any reason, and this subscription offer shall become binding upon the Company only when accepted, in writing, by the Company.

 

(b) This subscription offer may not be withdrawn by me.

 

(F) SUITABILITY. I hereby warrant and represent:

 

(a) That I can afford a complete loss of the investment and can afford to hold the securities being purchased hereunder for an indefinite period of time;

 

(b) That I consider this investment a suitable investment and;

 

(c) That I have had prior experience in financial matters and investments.

 

(G) RESTRICTIONS.

 

This subscription is personal to the investor whose name and address appear below. It may not be sold, transferred, assigned or otherwise disposed of to any other person, natural or artificial.

 

(H) CONDITIONS.

 

This subscription shall become binding upon the Company and me only when accepted, in writing, by the issuer.

 

 

(I) AFFIRMATIVE REPRESENTATIONS.

 

(a) I have been furnished and have carefully read the Company business plan and the documents attached as exhibits thereto, including the Subscription Agreement. I am aware that:

 

(1) There are substantial risks incident to the ownership of shares in the Company, and such investment is speculative and involves a high degree of risk of loss by me of my entire investment in the Company;

 

(2) No federal or state agency has passed upon the Shares or made any finding or determination concerning the fairness of this investment;

 

(b) I acknowledge that I have been advised to consult my own attorney concerning the investment.

 

(c) I acknowledge that the investment in the Company is an illiquid investment. In particular, I recognize that:

 

(1) Due to restrictions described below, the lack of any market existing or to exist for these shares, in the event I should attempt to sell my shares in the Company, my investment will be highly illiquid and, probably must be held indefinitely.

 

(2) I must bear the economic risk of investment in the shares for an indefinite period of time, since the shares have not been registered under the Securities Act of 1933, as amended. Therefore, the Shares cannot be offered, sold, transferred, pledged, or hypothecated to any person unless either they are subsequently registered under said Act or an exemption from such registration is available and the favorable opinion of counsel for the Company to that effect is obtained, which is not anticipated.

 

(3) My right to transfer my Shares will also be restricted as provided in this Subscription Agreement.

 

(d) I represent and warrant to the Company that:

 

(1) I have carefully reviewed and understand the risks of, and other considerations relating to, a purchase of shares, including the risks set forth in this Agreement.

 

(2) I and my investment advisors, if any, have been furnished all materials relating to the Company and its proposed activities, the offering of shares, or anything set forth in the business plan which they have requested and have been afforded the opportunity to obtain any additional information necessary to verify the accuracy of any representations or information set forth in the business plan;

 

 

(3) The Company has answered all inquiries that I and my investment advisors, if any, have put to it concerning the Company and its proposed activities and the offering and sale of the Shares;

 

(4) Neither I nor my investment advisors, if any, have been furnished any offering literature other than the business plan and the documents that may be attached as exhibits thereto and I and my investment advisors, if any, have relied only on the information contained in the business plan and such exhibits and the information, as described in subparagraphs (b) and (c) above, furnished or made available to them by the Company;

 

(5) I am acquiring the Shares for which I hereby subscribe for my own account, as principal, for investment purposes only and not with a view to the resale or distribution of all or any part of such shares, and that I have no present intention, agreement or arrangement to divide my participation with others or to resell, transfer or otherwise dispose of all or any part of the Securities subscribed for unless and until I determine, at some future date, that changed circumstances, not in contemplation at the time of this purchase, makes such disposition advisable;

 

(6) I, the undersigned, if on behalf of a corporation, partnership, trust, or other form of business entity, affirm that: it is authorized and otherwise duly qualified to purchase and hold Securities in the Company; recognize that the information under the caption as set forth in (a) above related to investments by an individual and does not address the federal income tax consequences of an investment by any of the aforementioned entities and have obtained such additional tax advice that I have deemed necessary; such entity has its principal place of business as set forth below; and such entity has not been formed for the specific purpose of acquiring shares in the Company.

 

(7) I have adequate means of providing for my current needs and personal contingencies and have no need for liquidity in this investment; and

 

(e) I hereby adopt, accept, and agree to be bound by all the terms and conditions of this Agreement, and by all of the terms and conditions of the Articles of Incorporation, and amendments thereto, and By-Laws. Upon acceptance of this Subscription Agreement by the Company, I shall become a shareholder for all purposes, and the Shares subscribed shall be issued.

 

 

(f) The Subscription, upon acceptance by the Company, shall be binding upon the heirs, executors, administrators, successors, and assigns of mine.

 

(g) I hereby represent and warrant that I am an accredited investor (as defined below).

 

(h) I further hereby represent that either:

 

(1) I have such knowledge and experience in business and financial matters that I am capable of evaluating the Company and proposed activities thereof, the risks and merits of investment in the Shares and of making an informed investment decision thereon, and am not utilizing a purchaser representative in connection with evaluating such risks and merits; or

 

(2) I and the persons listed in (3) below (not affiliated with the Company) together have such knowledge and experience in financial and business matters that we are capable of evaluating the merits and risks of investment in the shares and make an informed decision.

 

(Note: If (1) is correct, cross out (2). If (2) is appropriate (1) and, if (3) below, list, and indicate professional or business relationship to the undersigned relied upon, or with whom the undersigned consulted, in evaluating the merits and risks investment in the shares. If such person is serving as a Purchaser Representative of me, have such individual(s) complete a Purchaser Representative Affidavit obtained from the Company.

 

(3) In evaluating the merits and risks of investment in the Shares, I have relied upon the advice of, or consulted with, only the following persons (not affiliated with the Company):

 

(1) ___________________________________________

Name

__________________________________________

Relationship

 

(2) ___________________________________________

Name

_______________________________________

Relationship

 

 

 

(i) I have / have not previously invested in private placement securities (such as stock, equipment leasing, mineral, oil and gas, or cattle feeding syndications). (CROSS OUT INCORRECT ANSWER.)

 

(j) I further represent and warrant:

 

(1) That I hereby agree to indemnify the Company and hold the Company harmless from and against any and all liability, damage, cost, or expense incurred on account of or arising out of:

 

(A) Any inaccuracy in my declarations, representations, and warranties hereinabove set forth;

 

(B) The disposition of any of the Shares which I will receive, contrary to my foregoing declarations, representations, and warranties; and

 

(C) Any action, suit or proceeding based upon (1) the claim that said declarations, representations, or warranties were inaccurate or misleading or otherwise cause for obtaining damages or redress from the Company; or (2) the disposition of any of the Shares or any part thereof.

 

(k) This Agreement shall be construed in accordance with and governed by the laws of the State of Delaware, except as to the manner in which the subscriber elects to take title to shares in the Company which shall be construed in accordance with the State of his principal residence.

 

(l) Upon request of the Company, I shall provide a sworn and signed copy of my current financial statement.

 

(m) Short Sales. Prior to the date hereof, I have not taken, and prior to the public announcement of the transaction after the closing I shall not take, any action that has caused or will cause the me to have, directly or indirectly, sold or agreed to sell any shares of common stock, effected any short sale, whether or not against the box, established any “put equivalent position” (as defined in Rule 16a-1(h) under the Securities Exchange Act of 1934 with respect to the common stock, granted any other right (including, without limitation, any put or call option) with respect to the common stock or with respect to any security that includes, relates to or derived any significant part of its value from the common stock.

 

 

 

(4) Subscription for Shares:

 

Number of Shares subscribed for: ______________

 

Total consideration: $____ _______

 

Subscriber:

Name (please print) ____ ______

 

Tax ID No.

 

Address:

 

(including Zip Code)

 

Phone

 

Nature of Business

 

Net Worth

 

Liquid Assets

 

(5) I will hold title to my interest as follows:

 

{ } Community Property

 

{ } Joint Tenants with Right Survivorship

 

{ } Tenants in Common

 

{ } Individually

 

{ } Other: (Corporation, Trust, Etc., please indicate)

 

Please title to: ____________________________

 

(Note: Subscribers should seek the advice of their attorneys in deciding in which of the above forms they should take ownership of the Shares, since different forms of ownership can have varying gift tax and other consequences, depending on the state of the investor's domicile and their particular personal circumstances. For example, in community property states, if community property assets are used to purchase shares held in individual ownership, this might have adverse gift tax consequences. IF OWNERSHIP IS BEING TAKEN IN JOINT NAME WITH A SPOUSE OR ANY OTHER PERSON, THEN ALL SUBSCRIPTION DOCUMENTS MUST BE EXECUTED BY ALL SUCH PERSONS.)

 

(6) [_] (Check if applicable.) Accredited Investor. I represent that I am an “Accredited Investor” or an Officer of an “Accredited Investor” as defined below:

 

 

Accredited investor shall mean any person who comes within any of the following categories, or who the issuer reasonably believes come within any of the following categories, at the time of the sale of the securities to that person.

 

(1) Any bank as defined in section 3(a)(2) of the Act, or any savings and loan association or other institution as defined in section 3(a)(5)(A) of the Act whether acting in its individual or fiduciary capacity; any broker or dealer registered pursuant to section 15 of the Securities Exchange Act of 1934; any insurance company as defined in section 2(13) of the Act; any investment company registered under the Investment Company Act of 1940 or a business development company as defined in section 2(a)(48) of that Act; any Small Business Investment Company licensed by the U.S. Small Business Administration under section 301(c) or (d) of the Small Business Investment Act of 1958; any plan established and maintained by a state, its political subdivisions, or any agency or instrumentality of a state or its political subdivisions, for the benefit of its employees, if such plan has total assets in excess of $5,000,000; any employee benefit plan within the meaning of the Employee Retirement Income Security Act of 1974 if the investment decision is made by a plan fiduciary, as defined in section 3(21) of such act, which is either a bank, savings and loan association, insurance company, or registered investment adviser, or if the employee benefit plan has total assets in excess of $5,000,000 or, if a self-directed plan, with investment decisions made solely by persons that are accredited investors;

 

(2) Any private business development company as defined in section 202(a)(22) of the Investment Advisers Act of 1940;

 

(3) Any organization described in section 501(c)(3) of the Internal Revenue Code, corporation, Massachusetts or similar business trust, or partnership, not formed for the specific purpose of acquiring the securities offered, with total assets in excess of $5,000,000;

 

(4) Any director, executive officer, or general partner of the issuer of the securities being offered or sold, or any director, executive officer, or general partner of a general partner of that issuer;

 

(5) Any natural person whose individual net worth, or joint net worth with that person’s spouse, at the time of his purchase exceeds $1,000,000; excluding the market value of primary residence and debt thereon, except in the event the debt exceeds such primary residence value.

 

(6) Any natural person who had an individual income in excess of $200,000 in each of the two most recent years or joint income with that person’s spouse in excess of $300,000 in each of those years and has a reasonable expectation of reaching the same income level in the current year;

 

(7) Any trust, with total assets in excess of $5,000,000, not formed for the specific purpose of acquiring the securities offered, whose purchase is directed by a sophisticated person as described in §230.506(b)(2)(ii); and

 

 

(8) Any entity in which all of the equity owners are accredited investors.

 

(9) An entity or person defined under SEC CFR §2330.001 and California Corporations Code §25102(n) (by inclusion).

 

An affiliate of, or person affiliated with, a specific person shall mean a person that directly, or indirectly through one or more intermediaries, controls or is controlled by, or is under common control with, the person specified.

 

IN WITNESS WHEREOF, subject to acceptance by the Company, I have completed this Subscription Agreement to evidence my Subscription as set forth hereinabove, and I submit herewith a wire transfer in the amount of $ for Shares, this ____day of May, 2020.

 

         
       
Subscriber:   Subscriber  
Name:        
         

 

Mailing Address:

 

 

 

 

 

 

 

 

 

THIS SUBSCRIPTION OFFER IS ACCEPTED THIS ______ DAY OF _________________________, 20____.

 

 

HELIX TCS, INC.

 

 

 

By: _____________________________________________