On August 29, 2017, AeroGrow issued 850,749 shares of common stock to SMG Growing Media, a wholly owned subsidiary of The Scotts Miracle-Gro Company, pursuant to their Technology Licensing Agreement and Brand License.
As previously disclosed in a Form 8-K filed with the SEC on April 23, 2013, payments to SMG Growing Media under the Technology Licensing Agreement, Brand License and the Certificate of Designation of Series B Convertible Preferred Stock are made in the AeroGrow’s common stock, based upon the conversion price of the Series B Preferred Stock.
Back in April of 2013, SMG Growing Media, Inc. acquired 2,649,007 shares of the Company’s Series B Convertible Preferred Stock. The Series B Preferred Stock is convertible into 2,649,007 shares of common stock ($4,000,000 divided by a conversion price of $1.51 per share). Additionally, the Series B Preferred Stock bears a cumulative annual dividend of 8.0%, payable in shares of AeroGrow common stock at a conversion price of $1.51 per share, subject to customary anti-dilution rights.