Victory Energy Corporation (OTCMKTS:VYEY) Files An 8-K Amendments to Articles of Incorporation or Bylaws; Change in Fiscal YearItem 5.03 Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year.
On November 21, 2017, Victory Energy Corporation (the “the Company”), filed Amended and Restated Articles of Incorporation with the Nevada Secretary of State to, among other things, (i) increase the number of authorized shares of the Company’s common stock from 47,500,000 shares to 300,000,000 shares, (ii) increase the number of authorized shares of the Company’s preferred stock from 2,500,000 shares to 10,000,000 shares, and (iii) implement a 1-for-38 reverse split of the Company’s outstanding common stock. The Amended and Restated Articles became effective on November 21, 2017, but the reverse split will not become effective until November 24, 2017. The Amended and Restated Articles of Incorporation also include the following amendments:
| · | the addition of a provision regarding the Company’s election not to be governed by certain provisions of the Nevada Revised Statutes regulating control share acquisitions; |
| · | the removal of a provision regarding the number, election and removal of directors, which is included in the Company’s Amended and Restated Bylaws; and |
| · | the removal of a provision regarding the Company’s officers, which is included in our Amended and Restated Bylaws. |
The Amended and Restated Articles of Incorporation were approved by the Company’s Board of Directors on September 14, 2017 and by the Company’s stockholders at the special meeting held on November 20, 2017. For more information regarding the Amended and Restated Articles of Incorporation, please see the Company’s proxy statement filed on October 23, 2017.
Item 5.07 Submission of Maters to a Vote of Security Holders.
On November 20, 2017, the Company’s stockholders voted on the following matters at a special meeting of stockholders:
| 1. | To approve an amendment and restatement of the Company’s Amended and Restated Articles of Incorporation to, among other things, (i) increase the number of authorized shares of the common stock, $0.001 par value per share, of the Company from 47,500,000 shares to 300,000,000 shares and increase the number of authorized shares of the preferred stock, $0.001 par value per share, of the Company from 2,500,000 shares to 10,000,000 shares; and (ii) implement a 1-for-38 reverse split of the Company’s outstanding common stock. |
| 2. | To approve the divestiture of all of the Company’s partnership interests in Aurora Energy Partners, to the terms and conditions of a divestiture agreement, dated August 21, 2017, between the Company and Navitus Energy Group, as amended. |
| 3. | To approve the Victory Energy Corporation 2017 Equity Incentive Plan. |
| 4. | To elect seven (7) director nominees to the Company’s board of directors to serve until the next annual meeting of the Company’s stockholders or until their successors are elected and qualify, subject to their prior death, resignation or removal. |
Proposal No. 1 – Approve Amended and Restated Articles of Incorporation
The Company’s stockholders cast their votes as set forth below with respect to the approval of the Amended and Restated Articles of Incorporation which, among other things, increases the number of authorized shares of the Company’s common stock and preferred stock and implements a 1-for-38 reverse split of its outstanding common stock.
|
For |
Against |
Abstain |
|
56,341,590 |
25,374 |
11,668 |
Proposal No. 2 – Divestiture Proposal
The Company’s stockholders cast their votes as set forth below with respect to the approval of the divesture and transfer (the “Divestiture”) of its 50% ownership interest in Aurora Energy Partners to Navitus Energy Group, which currently owns the remaining 50% interest, in consideration for a release from Navitus of all of the Company’s obligations under the second amended partnership agreement, dated October 1, 2011, between the Company and Navitus, including, without limitation, obligations to return to Navitus investors their accumulated deferred capital, deferred interest and related allocations of equity. In connection with the Divestiture, the Company also agreed to (i) issue 166,549,134 shares of its common stock (or 4,382,872 shares following the planned 1-for-38 reverse stock split) to Navitus and (ii) pay off or otherwise satisfy all indebtedness and other material liabilities of Aurora.
|
For |
Against |
Abstain |
|
56,356,018 |
6,914 |
15,700 |
Proposal No. 3 – Approval of 2017 Equity Incentive Plan
The Company's stockholders cast their votes as set forth below with respect to the approval of the Company’s 2017 Equity Incentive Plan.
|
For |
Against |
Abstain |
|
56,343,216 |
21,853 |
13,563 |
Proposal No. 4 – Election of Directors
The Company's stockholders cast their votes as set forth below with respect to the election of directors.
|
Name |
For |
Withheld |
|
Ronald W. Zamber |
56,354,840 |
23,792 |
|
Kevin DeLeon |
56,356,164 |
22,468 |
|
Kenneth Hill |
56,355,039 |
23,593 |
|
Robert Grenley |
56,356,164 |
22,468 |
|
Ricardo A. Salas |
56,355,964 |
22,668 |
|
Julio C. Herrera |
56,357,086 |
21,546 |
|
Eric Eilertsen |
56,357,086 |
21,546 |
Item 8.01 Other Events.
On November 21, 2017, the Company issued a press release announcing the voting results from its special meeting of stockholders held on November 20, 2017.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
The following exhibits are filed herewith:
VICTORY ENERGY CORP Exhibit…To view the full exhibit click here
About Victory Energy Corporation (OTCMKTS:VYEY)
Victory Energy Corporation (Victory) is an independent exploration and production company. The Company is engaged in the acquisition, exploration and production of oil and natural gas properties, through its partnership with Aurora Energy Partners (Aurora). The Company has technical and specialized resources located in Midland, Texas. The Company is focused on the acquisition and development of unconventional resource play opportunities in the Permian Basin, the Eagle Ford shale of South Texas and other areas. The Company has approximately 40 gross and over nine net wells, in production. The Company’s portfolio of producing assets includes the Eagle Ford property, the Fairway property, the Bootleg Canyon Ellenberger Field, the Adams-Baggett Gas Field, the Chapman Ranch, the Morgan Property and the Clear Water Wolfberry Resource Play. All of Victory’s assets are located in the United States. The Bootleg Canyon Property, which covers over 4,000 acres, is located in Pecos County, Texas.
