0001437749-20-007798.txt : 20200415 0001437749-20-007798.hdr.sgml : 20200415 20200415200954 ACCESSION NUMBER: 0001437749-20-007798 CONFORMED SUBMISSION TYPE: 4 PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20200413 FILED AS OF DATE: 20200415 DATE AS OF CHANGE: 20200415 REPORTING-OWNER: OWNER DATA: COMPANY CONFORMED NAME: Li Yubao CENTRAL INDEX KEY: 0001795255 FILING VALUES: FORM TYPE: 4 SEC ACT: 1934 Act SEC FILE NUMBER: 000-23115 FILM NUMBER: 20794865 MAIL ADDRESS: STREET 1: 4 19/F, 126 ZHONG BEI CITY: WUCHANG DISTRICT STATE: F4 ZIP: 430061 ISSUER: COMPANY DATA: COMPANY CONFORMED NAME: Yunhong CTI Ltd. CENTRAL INDEX KEY: 0001042187 STANDARD INDUSTRIAL CLASSIFICATION: FABRICATED RUBBER PRODUCTS, NEC [3060] IRS NUMBER: 362848943 STATE OF INCORPORATION: IL FISCAL YEAR END: 1231 BUSINESS ADDRESS: STREET 1: 22160 N PEPPER RD CITY: BARRINGTON STATE: IL ZIP: 60010 BUSINESS PHONE: 8473821000 MAIL ADDRESS: STREET 1: 22160 N PEPPER RD CITY: BARRINGTON STATE: IL ZIP: 60010 FORMER COMPANY: FORMER CONFORMED NAME: CTI INDUSTRIES CORP DATE OF NAME CHANGE: 19970710 4 1 rdgdoc.xml FORM 4 X0306 4 2020-04-13 0001042187 Yunhong CTI Ltd. CTIB 0001795255 Li Yubao ROOM 4, 19F ZHONGBEI ROAD #126 WUHAN HUBEI F4 430000 CHINA 1 1 Common Stock 2020-04-13 4 P 0 260000 1 A 400000 I By LF International Pte. Ltd. Series A Preferred Stock 1 2020-04-13 4 P 0 130000 10 A Common Stock 1300000 450000 I By LF International Pte. Ltd. Pursuant to the Amendment No. 2 to that certain Stock Purchase Agreement (the "Amendment No. 2") by and between Yunhong CTI Ltd. (formerly known as CTI Industries Corporation, the "Company") and LF International Pte. Ltd. ("LF") dated April 13, 2020, the Company agreed to issue and sell 130,000 shares of Series A Convertible Preferred Stock ("Series A Preferred Stock") of the Company to LF (the "Additional Interim Closing"). As an inducement to enter into the Amendment No. 2, the Company (i) granted to LF the right to appoint and elect a third member to the Company's Board of Directors at the Company's next annual meeting of stockholders and (ii) agreed to issue to LF 260,000 shares of the Company's common stock ("Common Stock"), valued at $1 per share. On April 13, 2020, the parties completed the Additional Interim Closing by which the Company issued to LF 130,000 shares of Series A Preferred Stock and 260,000 shares of Common Stock. Each share of Series A Preferred Stock of the Company is initially convertible into ten (10) shares of the Company's common stock, subject to certain conditions, and has no expiration date. Mr. Li has 95% voting and dispositive control over the shares held by the LF and may be deemed the beneficial owner of such Series A Preferred Stock and Common Stock. Each holder of Series A Preferred Stock shall have the right to convert the stated value of such shares, as well as accrued but unpaid declared dividends thereon (collectively the "Conversion Amount") into Common Stock. The number of shares of Common Stock issuable upon conversion of the Conversion Amount shall equal the Conversion Amount divided by the conversion price of $1.00, subject to certain customary adjustments, such that each share of Series A Preferred Stock is initially convertible into ten (10) shares of Common Stock. The Series A Preferred Stock is convertible at any time, except that it may not be converted into shares of Common Stock to the extent such conversion would result in the holder beneficially owning more than 4.99% ("Maximum Percentage") of the Company's outstanding Common Stock. In connection with the Additional Interim Closing on April 13, 2020, LF waived such Maximum Percentage. Holders of Series A Preferred Stock shall vote together with the holders of the Common Stock on an as-if-converted basis, whereby each share of the Series A Preferred Stock will be entitled to ten (10) votes, subject to adjustment. /s/ Yubao Li 2020-04-15