Premier Air swaps $6.42M debt for 100,000 preferred shares
Premier Air Charter Holdings Inc. entered a Conversion Agreement with Innoworks Employment Services to exchange $6,419,269.43 in debt, including accrued interest owed by its subsidiary, for 100,000 shares of Series A Preferred Stock.
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Rhea-AI Filing Summary
Premier Air Charter Holdings Inc. entered a Conversion Agreement with Innoworks Employment Services to exchange $6,419,269.43 in debt, including accrued interest owed by its subsidiary, for 100,000 shares of Series A Preferred Stock. The debt consolidated notes from February 2, 2024 and August 1, 2024, plus additional amounts as of March 19, 2025.
The company designated 100,000 shares as Series A Preferred on August 6, 2025. On October 21, 2025, it amended the Series A conversion price from $0.04 per share to $0.25 per share, as approved by the board and requisite stockholders, reflecting a mutual aim to align terms with the company’s position and reduce potential dilution upon conversion.
Insights
Non-cash debt-for-equity swap with higher conversion price.
The company exchanged $6,419,269.43 of subsidiary debt for 100,000 Series A Preferred shares under an agreement dated August 5, 2025. This replaces a cash liability with preferred equity, which can ease near-term cash demands while introducing a potential future equity overhang via conversion.
On October 21, 2025, the conversion price in the Certificate of Designation was amended from $0.04 to $0.25 per share, approved by the board and requisite stockholders. A higher conversion price generally means fewer common shares would be issued upon conversion at the same preferred amount, aligning with the stated aim to reduce potential dilution.
The Certificate of Designation for the Series A (100,000 shares) became effective upon filing on August 6, 2025. Actual common share issuance depends on future conversion decisions and terms in the certificate and agreements.
8-K Event Classification
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What did PREM change in its capital structure?
What is the new conversion price for PREM’s Series A Preferred?
Who is the counterparty to PREM’s conversion agreement?
Did PREM’s stockholders approve the conversion price amendment?
What was the source of the exchanged debt at PREM?
AI-generated analysis. How Rhea-AI works. Not financial advice.