Mitesco halts Series A preferred stock redemptions
VERO BEACH, Fla. - Mitesco, Inc., a company that specializes in edge data centers and Robo Agent AI software for sales automation, has announced it will stop redemptions of its Series A Preferred stock. The company made the decision following a review of its restructuring plan from the healthcare business it discontinued in fiscal year 2022.
The preferred stock structure, which involved quarterly redemptions via common stock issuances at a 10% discount to the market price, was designed to provide investors with a return over a period of three years. However, Chairman Mack Leath stated that the structure has not delivered the expected benefits. The decision to halt redemptions was approved by the board and a majority of Series A Preferred shareholders.
The company stated that they had contemplated modifications to the preferred stock terms in the underlying issuance documents. Mitesco will seek input from the five Series A Preferred shareholders to establish a new approach by September 30, 2026, with changes requiring approval from the majority of Series A Preferred shareholders and the board of directors.
The company remains committed to its TCDC approach in edge data centers and the development of Robo Agent AI software for sales automation.
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