Item 3.02 Unregistered Sales of Equity Securities
On March 13, 2023, Professional Diversity Network, Inc. (the "Company") entered
into a stock purchase agreement (the "Agreement") with Ms. Yiran Gu (the
"Investor"), a former investor of the Company and a citizen of the People's
Republic of China, in connection with the purchase by the Investor of 333,181
shares of common stock of the Company (the "Shares") at a price of approximately
$2.10 per share (representing a 20% discount of the 5-day moving average price
of the common stock immediately prior to the execution date) for aggregate gross
proceeds of $700,000. The proceeds will be used for general working capital
purposes. The closing of the transaction is expected to take place on March 16,
2023 (the "Closing Date").
The issuances of the Shares are exempt from registration due to the exemption
found in Regulation S promulgated by the Securities and Exchange Commission
under the Securities Act of 1933, as amended (the "Securities Act"). The sales
were offshore transactions since the offerees/purchasers were outside the United
States at the time of the purchase. Further, there were no directed selling
efforts of any kind made in the United States either by the Company or any
affiliate or other person acting on the Company's behalf in connection with the
offerings. All offering materials and documents used in connection with the
offers and sales of the securities included statements to the effect that the
securities have not been registered under the Securities Act and may not be
offered or sold in the United States or to U.S. persons unless the securities
are registered under the Securities Act or an exemption therefrom is available,
and that hedging transactions involving the Shares may not be conducted unless
in compliance with the Securities Act. The Investor certified that she is not a
U.S. person (as that term is defined in Regulation S) and is not acquiring the
Shares for the account or benefit of any U.S. person and agreed to resell the
Shares only in accordance with the provisions of Regulation S, pursuant to
registration under the Securities Act or pursuant to an available exemption from
registration. The Shares sold are restricted securities and the certificates
representing the Shares will be affixed with a standard restrictive legend,
which states that the Shares cannot be sold without registration under the
Securities Act or an exemption therefrom.
Pursuant to the Agreement, the Company agreed no later than 45 days after the
later of (a) the Closing Date and (b) the date on which the Company files with
the SEC its Annual Report on Form 10-K for the year ended December 31, 2022, the
Company will file a registration statement under the Securities Act to permit
the public resale of all the Shares from time to time as permitted by Rule 415
under the Securities Act and will use commercially reasonable efforts to cause
such registration statement to be declared effective as soon as practicable
after the filing thereof.
A copy of the form of the Agreement is attached hereto as Exhibits 10.1 and is
incorporated herein by reference. ?
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
Exhibit No. Description
10.1 Form of Stock Purchase Agreement between the Registrant and the
Investor
104 Cover Page Interactive Data File (formatted as Inline XBRL)
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