NextNRG amends preferred stock terms to boost equity

Miami - NextNRG Inc. (NASDAQ:NXXT) has modified the terms of its Series C Convertible Non-Voting Preferred Stock, as confirmed by a press release. The amendment, effective September 30, eliminates the holder's option to demand redemption of the Series C Preferred Stock, starting from the second anniversary of issuance. The stock remains redeemable under specific circumstances.

The company plans to transfer around $9.0 million in carrying value of the issued Series C Preferred Stock to shareholders' equity. The exact amount and accounting treatment depend on the company's completion of its accounting analysis and review by its independent public accounting firm. Initially, NextNRG planned to issue and sell up to 3,000,000 shares of Series C Preferred Stock for $27.2 million.

At the initial closing on August 13, 1,000,000 shares were issued and sold for $9.2 million. The amendment also adjusts other terms of the Series C Preferred Stock and related financing, including conditions for further closings. The company must obtain new shareholder approval for the amended transaction and adjust terms to its planned redomestication to Nevada and its recent 1-for-10 reverse stock split.

Nasdaq granted a determination letter to NextNRG on September 18, prompting a hearing before the Nasdaq Hearings Panel. This hearing process has temporarily halted any additional delisting actions. NextNRG intends to present its compliance plan, including the expected reclassification, to the panel. The company's common stock remains listed on the Nasdaq Capital Market under the symbol NXXT.