On January 1, 2012, the Company redeemed 1,540 common units for $100,000.
Effective January 31, 2012, TCP sold 496 of its new issue redeemable preferred membership units (the redeemable preferred) to John O. Hanson for a purchase price of $2,745,000, paid by conversion of certain notes payable to him. The redeemable preferred incorporated a distribution of $45,750 per month, was not convertible, and had no corporate governance rights. Effective July 1, 2012, the redeemable preferred membership units issued by TCP were exchanged for redeemable preferred issued by the Company with identical rights and terms.
Effective December 31, 2012, Mr. Krieger purchased 525 common units held by DBJ 2001 Holdings, LLC.
Effective June 28, 2013, Mr. Krieger purchased all of the outstanding redeemable preferred membership units from Mr. Hanson. Concurrently with the purchase, Mr. Krieger and the Company exchanged the redeemable preferred for 496 new Series A preferred units (the Series A preferred) and the redeemable preferred was cancelled. The Series A preferred is not redeemable, callable, or convertible, is non-voting with respect to elections to the Companys Board of Governors, is senior to the Companys common equity units with respect to rights in liquidation, and is entitled to distributions out of legally available funds in the amount of $92.25 per unit per month.
As of December 31, 2013, the Companys ownership is as presented below:
Series A Preferred | Common | |||||||||||||||
Units Held | Percent of Class | Units Held | Percent of Class | |||||||||||||
At December 31, 2013 | ||||||||||||||||
Timothy S. Krieger | 496 | 100.00% | 4,935 | 99.50% | ||||||||||||
Summer Enterprises, LLC | | 0.00% | 25 | 0.50% | ||||||||||||
Totals | 496 | 100.00% | 4,960 | 100.00% |