VISIUM TECHNOLOGIES, INC. Update: Understanding the New "Series A" Stock Rules

If you follow Visium Technologies (OTC: VISI), you should know about the company’s new plan for managing its capital. They recently released the official rules for their "Series A Preferred Stock." This is a key step in cleaning up their balance sheet and simplifying their ownership structure. Here is the breakdown in plain English.

1. What happened?

Visium filed a "Certificate of Designation" for its Series A Preferred Stock. This document sets the rules for these shares. Key points include:

• The Two-Year Wait: Holders cannot convert these shares into common stock for 24 months after they are issued.
• Strict Conversion Rules: After two years, conversion isn't automatic. Holders must submit a formal written request to the company’s transfer agent, including notarized ID and proof of ownership.
• Automatic Conversion: To eventually eliminate this class of stock, the company mandates an automatic conversion. In the 49th month after issuance, any remaining Series A shares will turn into common stock automatically.

2. Why does this matter?

This move aims to create stability and prevent sudden price swings. By setting these rules, the company reduces the risk of "toxic" dilution, where large blocks of stock hit the market at once and drive the price down.

• Protecting Common Shareholders: A "Leak-Out" provision limits how many shares holders can sell each month after the two-year wait. This prevents a massive sell-off that could crash the share price.
• Anti-Dilution: If the company does a reverse stock split or issues a stock dividend, the conversion terms adjust. This keeps the playing field fair for everyone.

3. What’s the "Catch"?

Watch these two financial mechanisms:

• The Price Floor: The conversion price is tied to the common stock price. If the common stock falls below $0.10, the conversion rate resets to a floor of $0.035 per share. This guarantees preferred shareholders a minimum stake, even if the market struggles.
• No Voting Rights: These shares are "non-voting." Holders get a claim on equity but cannot vote on board elections or mergers. This keeps control in the hands of current management.

4. What does this mean for you?

Visium is trying to "professionalize" its stock structure to attract institutional investors or qualify for an uplisting. They are moving away from older, informal debt-conversion models toward a transparent system that limits how early creditors can affect the share count.

The takeaway: The company is building a "security checkpoint" for its equity. While the $0.035 conversion floor could lead to more shares being issued if the stock price stays low, the "Leak-Out" agreements protect common shareholders from sudden, liquidity-driven crashes.

5. What happens next?

The company is clearing the path for future financing. Watch for progress on the business goals mentioned in the March 2026 Letter of Intent, which focuses on cybersecurity and data analytics. The company didn't provide much detail about specific upcoming board appointments in this filing, but keep an eye out for leadership updates that could signal a push for long-term growth.

Disclaimer: I am an AI, not a financial advisor. This summary is for informational purposes only and is not professional investment advice. Always do your own research before making financial decisions.