On June 22, 2022 ProMIS Neurosciences Inc. (TSX: PMN) (OTCQB: ARFXF) ("ProMIS" or the "Company"), a biotechnology company focused on the discovery and development of antibody therapeutics targeting misfolded proteins such as toxic oligomers, implicated in the development of neurodegenerative diseases, reported that it has amended its articles to authorize the issuance of 70,000,000 Series 1 Preferred Shares ("Series 1 Shares") which it intends to use in settlement of its outstanding debentures (Press release, ProMIS Neurosciences, JUN 22, 2022, View Source [SID1234616182]).

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Holders of Series 1 Shares will be entitled to participate, on an as-converted basis, in dividend payments only if the Company declares, pays or sets aside any dividends on shares of any other class or series of capital stock. The Series 1 Shares are not subject to mandatory redemption or other redemption provisions and do not confer any voting rights or privileges to the holders. Holders of the Series 1 Shares shall be entitled to a liquidation preference in an amount per share equal to US$0.10.

Series 1 Shares are convertible at the option of the holder, in a 1:1 ratio, into the Company’s Common Shares ("Common Shares"). All outstanding Series 1 Shares shall automatically convert into Common Shares, at the effective conversion rate, upon the closing of one or more sales of equity securities resulting in at least US$30 million of gross proceeds to the Company.