SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Schedule 13D
Under the Securities Exchange Act of 1934
(Amendment No __)*
Minnesota Brewing Company
(Name of Issuer)
Common Stock, $.01 Par Value
(Title of Class of Securities)
604005 10 8
(CUSIP Number)
Bruce E. Hendry
c/o Dougherty Summit Securities, LLC
Suite 4400
90 South Seventh Street
Minneapolis, MN 55402, Phone: (612) 897-5569
(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
March 31, 1999
(Date of Event which Requires Filing
of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition which is the subject of this Schedule 13D, and is filing this
schedule because of Rule 13d-1(b)(3) or (4), check the following box [ ].
NOTE: Six copies of this statement, including all exhibits, should be filed with
the Commission. See Rule 13d-1(a) for other parties to whom copies are to be
sent.
*The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter the
disclosures provided in a prior cover page.
The information required in the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).
(Continued on following page(s))
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CUSIP NO. 604005 10 8 13D
----------------
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Minnesota Brewing Limited Partnership
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |_|
(b) |_|
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
NA
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEM 2(d) or 2(e) |_|
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Minnesota
- --------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF
SHARES -------------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 2,148,829
-------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
-------------------------------------------------------------
PERSON 10 SHARED DISPOSITIVE POWER
WITH 2,148,829
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,148,829
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* |_|
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
62.1%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
- --------------------------------------------------------------------------------
<PAGE>
CUSIP NO. 74974R 10 7 13D
----------------
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Bruce E. Hendry
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |_|
(b) |_|
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
NA
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEM 2(d) or 2(e) |_|
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
U.S.A.
- --------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF
SHARES -------------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 2,148,829
-------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
-------------------------------------------------------------
PERSON 10 SHARED DISPOSITIVE POWER
WITH 2,148,829
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,148,829
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* |X|
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
62.1%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
- --------------------------------------------------------------------------------
<PAGE>
ITEM 1. Security and Issuer
(a) Name of Issuer.
Minnesota Brewing Company, a Minnesota Corporation
Common Stock, $.01 Par Value
(b) Address of Issuer's Principal Executive Offices.
882 West Seventh Street
Saint Paul, Minnesota 55102
ITEM 2. Identity and Background
(a) Name. This statement is being jointly filed by Minnesota Brewing
Limited Partnership and Bruce E. Hendry
(b) Address of Principal Business Office Or, If None, Residence. The
principal address of Minnesota Brewing Limited Partnership and Bruce E.
Hendry is Dougherty Summit Securities, LLC, 90 South Seventh Street,
Suite 4400, Minneapolis, MN 55402.
(c) Present Principal Occupation or Employment. Bruce E. Hendry is
Chair of Minnesota Brewing Company and an employee of Dougherty Summit
Securities, LLC.
(d) Criminal Proceedings. None.
(e) Litigation. None.
(f) Citizenship. Bruce E. Hendry is a citizen of the United States.
ITEM 3. Source And Amount of Funds or Other Consideration
On March 31, 1999, Minnesota Brewing Company filed with the Minnesota
Secretary of State a Certificate of Right and Preferences of Class A Convertible
Preferred Stock and reserved the issuance of 700,000 shares. Minnesota Brewing
Company issued a total of 547,614 shares to the Minnesota Brewing Limited
Partnership on March 31, 1999. This represented the conversion into the Class A
Preferred Stock of $1,369,036 of debt owed by Minnesota Brewing Company at
December 31, 1998 to the Minnesota Brewing Limited Partnership.
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Minnesota Brewing Company and the Minnesota Brewing Limited Partnership
had agreed in December 1998 to convert the debt into preferred stock of
Minnesota Brewing Company.
The Minnesota Brewing Limited Partnership also agreed to convert an
additional $150,327 of debt existing at March 31, 1999 into 60,131 shares of
Class A Convertible Preferred Stock. The amounts due to Minnesota Brewing
Limited Partnership were derived from rents due and owing for the lease by
Minnesota Brewing Company from the Minnesota Brewing Limited Partnership of the
facility at which the Minnesota Brewing Company operates and interest on
borrowngs by Minnesota Brewing Company from Minnesota Brewing Limited
Partnership.
ITEM 4. Purpose of Transaction
The purpose of the conversion of the indebtedness into Class A
Convertible Preferred Stock was to improve the capitalization of Minnesota
Brewing Company. Minnesota Brewing Company brews beer and is in the process of
exploring the development of an ethanol production facility.
Minnesota Brewing Limited Partnership and Bruce E. Hendry intend to
participate with Minnesota Brewing Company in connection with the production of
ethanol, and have the established a new entity that will be involved in the
ownership of the ethanol facility. Minnesota Brewing Company and the Minnesota
Brewing Limited Partnership transferred assets to the new entity in connection
with the exploration of the ethanol project.
It is anticipated that Mr. Hendry will receive the right to buy
additional shares of Minnesota Brewing Company stock in connection with the
establishment of the new entity.
Except as set forth above, Bruce Hendry and Minnesota Brewing Limited
partnership has no present plans or intentions that would result in or relate to
any of the transactions described in subparagraphs (a) through (j) of Item 4 of
Schedule 13D.
ITEM 5. Interest in Securities of the Issuer
As of March 31, 1999 the ownership of Minnesota Brewing Limited
Partnership and Bruce E. Hendry was as follows:
(a) Amount Beneficially Owned - 2,148,829
(b) Of the shares owned, the Minnesota Brewing Limited Partnership and
Bruce E. Hendry have the power to vote as follows:
(i) Sole power to vote or direct the vote -
(ii) Shared power to vote or direct the vote - 2,148,829
(iii) Sole power to dispose or direct the disposition of -
(iv) Shared power to dispose or direct the disposition
of - 2,148,829
Of the shares listed above, 1,541,084 are shares of common stock and
607,745 are shares of Class A Convertible Preferred Stock. All the shares are
owned by Minnesota Brewing Limited Partnership.
<PAGE>
Bruce E. Hendry is the president and sole shareholder of Minnesota
Brewing Management Company, the general partner of Minnesota Brewing Limited
Partnership. As a result Bruce E. Hendry the power to vote all the shares of
common stock and Class A Convertible Preferred Stock owned by Minnesota Brewing
Limited Partnership in Minnesota Brewing Company.
Each share of Class A Convertible Preferred Stock is convertible into a
share of common stock and has voting right equal to one share of common stock.
Each share of Class A Convertible Preferred Stock has a liquidation preference
of $2.50 per share and is entitled to cumulative dividends of nine percent (9%)
per year.
(c) Recent Transactions. See Item 3.
(d) Not applicable.
(e) Not applicable.
ITEM 6. Contracts, arrangements, Understanding and relationship with
respect to Securities of the Issuer.
As noted above, Bruce E. Hendry is the president and sole shareholder of
Minnesota Brewing Management Company, the general partner of Minnesota Brewing
Limited Partnership. As a result Bruce E. Hendry the power to vote all the
shares of common stock and Class A Convertible Preferred Stock owned by
Minnesota Brewing Limited Partnership in Minnesota Brewing Company.
ITEM 7. Material to be Filed as Exhibits
Exhibit 1 Joint Filing Agreement.
Exhibit 2 Certificate of Rights and Preferences of Class A
Preferred Stock.
<PAGE>
SIGNATURE
After reasonable inquiry and to the best of our knowledge and belief,
the undersigned certify that the information set forth in this statement is
true, complete and correct.
April 9, 1999 Minnesota Brewing Limited Partnership, a
Minnesota Limited Partnership, by Minnesota
Brewing Company, its General Partner
By: Bruce E Hendry
---------------------------------------
Bruce E. Hendry, President
/s/ Bruce E. Hendry
---------------
Bruce E. Hendry
EXHIBIT 1
JOINT FILING AGREEMENT
The undersigned, Bruce E. Hendry and Minnesota Brewing Limited
Partnership hereby agree that this Schedule 13D relating to securities of
Minnesota Brewing Company shall be filed on behalf of each of them.
Dated: April 9, 1999 Minnesota Brewing Limited Partnership, a
Minnesota Limited Partnership, by Minnesota
Brewing Company, its General Partner
By: Bruce E Hendry
---------------------------------------
Bruce E. Hendry, President
/s/ Bruce E. Hendry
---------------
Bruce E. Hendry
EXHIBIT 2
CERTIFICATE
OF
RIGHTS AND PREFERENCES
OF
CLASS A CONVERTIBLE PREFERRED STOCK
OF
MINNESOTA BREWING COMPANY
The undersigned, being the President of Minnesota Brewing Company, a
Minnesota corporation (the "Corporation"), hereby certifies that (a) the
following resolution was duly adopted on March 29, 1999 by the Board of
Directors of the Corporation, acting pursuant to the provisions of Section
302A.401, subdivision 3 of the Minnesota Business Corporation Act for the
purposes of establishing a separate series of the Corporation's authorized
preferred stock and fixing the relative rights and preferences of such series of
preferred stock, and (b) such resolution has not been subsequently modified or
rescinded:
RESOLVED, that 700,000 shares of this Corporation's undesignated stock
shall be designated as "Class A Convertible Preferred Stock" and the rights,
preferences, privileges and restrictions granted to or imposed upon the Class A
Convertible Preferred Stock are as follows:
1. DIVIDENDS.
(a) The holders of the Class A Convertible Preferred Stock shall be
entitled to receive cumulative dividends of 9% per annum payable quarterly,
beginning on January 1, 1999. The Company shall pay cash dividends within thirty
days of the end of each quarter. If, for any reason, the Corporation is unable
to pay any dividend when due, the dividend will accrue until paid in full.
(b) In the event the Corporation shall declare a distribution (other
than any distribution described in Section 2) payable in securities of other
persons, evidences of indebtedness issued by the Corporation or other persons,
assets (excluding cash dividends) or options or rights to purchase any such
securities or evidences of indebtedness, then, in each such case the holders of
the Class A Convertible Preferred Stock shall be entitled to a proportionate
share of any such distribution as though the holders of the Class A Convertible
Preferred Stock were the holders of the number of shares of Common Stock of the
Corporation into which their respective shares of Class A Convertible Preferred
Stock are convertible as of the record date fixed for the determination of the
holders of Common Stock of the Corporation entitled to receive such
distribution.
<PAGE>
2. LIQUIDATION PREFERENCE.
(a) In the event of any liquidation, dissolution or winding up of the
Corporation, whether voluntary or involuntary, the holders of the Class A
Convertible Preferred Stock shall be entitled to receive, prior and in
preference to any distribution of any of the assets or surplus funds of the
Corporation to the holders of the Common Stock by reason of their ownership
thereof, the amount of $2.50 per share (as adjusted for any stock dividends,
combinations or splits with respect to such shares), plus all declared but
unpaid dividends on such share for each share of Class A Convertible Preferred
Stock then held by them. If upon the occurrence of such event, the assets and
funds thus distributed among the holders of the Class A Convertible Preferred
Stock shall be insufficient to permit the payment to such holders of the full
aforesaid preferential amount, then the entire assets and funds of the
Corporation legally available for distribution shall be distributed ratably
among the holders of the Class A Convertible Preferred Stock in proportion to
the preferential amount each such holder is otherwise entitled to receive.
(b) In the event of any liquidation, dissolution or winding up of the
Corporation, whether voluntary or involuntary, and subject to the payment in
full of the liquidation preferences with respect to the Class A Convertible
Preferred Stock as provided in subparagraph (a) of this Section 2 and the
Corporation's Articles of Incorporation, the holders of the Common Stock shall
be entitled to receive an amount per share equal to their paid-in capital for
such shares divided by the number of shares of Common Stock outstanding; and
thereafter the holders of Common Stock shall be entitled to receive the entire
remaining assets and funds of the Corporation legally available for
distribution, such assets and funds to be distributed among such holders in
proportion to the shares then held by them on an as-if and fully converted basis
provided, however, that the holders of the Class A Convertible Preferred Stock
shall not have the right to participate in any such distribution under this
subparagraph (b) of this Section 2 unless they first waive, in writing, the
right to receive the amounts that would be due them as their liquidation
preference under this subparagraph (a) of this Section 2.
(c) For purposes of this Section 2, (i) any acquisition of the
Corporation by means of merger or other form of corporate reorganization in
which outstanding shares of the Corporation are exchanged for securities or
other consideration issued, or caused to be issued, by the acquiring corporation
or its subsidiary (other than a mere reincorporation transaction) in which the
shareholders of the Corporation immediately prior to the transaction described
above hold less than fifty percent (50%) of the combined entity, or (ii) a sale
of all or substantially all of the assets of the Corporation, shall be treated
as a liquidation, dissolution or winding up of the Corporation and shall entitle
the holders of Class A Convertible Preferred Stock and Common Stock to receive
at the closing in cash, securities or other property (valued as provided in
Section 2(d) below) the amounts and in the order of priority as specified in
Sections 2(a) and 2(b) above.
(d) Whenever the distribution provided for in this Section 2 shall be
payable in securities or property other than cash, the value of such
distribution shall be the fair market value of such securities
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<PAGE>
or other property as determined in good faith by the Board of Directors.
3. VOTING RIGHTS.
In addition to the rights provided herein, each holder of shares of the
Class A Convertible Preferred Stock shall be entitled to the number of votes
equal to the number of shares of Common Stock into which such shares of Class A
Convertible Preferred Stock could be converted and shall have voting rights and
powers equal to the voting rights and powers of the Common Stock and shall be
entitled to notice of any shareholders' meeting in accordance with the Bylaws of
the Corporation. Fractional votes shall not, however, be permitted and any
fractional voting rights resulting from the above formula (after aggregating all
shares into which shares of Class A Convertible Preferred Stock held by each
holder could be converted) shall be rounded to the nearest whole number (with
one-half being rounded upward).
4. CONVERSION.
The holders of the Class A Convertible Preferred Stock shall have
conversion rights as follows (the "Conversion Rights"):
(a) RIGHT TO CONVERT. Each share of Class A Convertible Preferred Stock
shall be convertible, at the option of the holder thereof, at any time after
April 1, 1999, at the office of the Corporation or any transfer agent for such
stock, into such number of fully paid and nonassessable shares of Common Stock
as are determined by dividing $2.50 by $2.50 (the "Conversion Price"). The Class
A Conversion Price is herein sometimes referred to as the "Conversion Price."
(b) MECHANICS OF CONVERSION. Before any holder of Class A Convertible
Preferred Stock shall be entitled to convert the same into shares of Common
Stock, such holder shall surrender the certificate or certificates therefor,
duly endorsed, at the office of the Corporation or of any transfer agent for
such stock, and shall give written notice to the Corporation at such office that
he elects to convert the same and shall state therein the name or names in which
he wishes the certificate or certificates for shares of Common Stock to be
issued. The Corporation shall, as soon as practicable thereafter, issue and
deliver at such office to such holder of Class A Convertible Preferred Stock, a
certificate or certificates for the number of shares of Common Stock to which he
shall be entitled as aforesaid. Such conversion shall be deemed to have been
made immediately prior to the close of business on the date of surrender of the
shares of Class A Convertible Preferred Stock to be converted, and the person or
persons entitled to receive the shares of Common Stock issuable upon such
conversion shall be treated for all purposes as the record holder or holders of
such shares of Common Stock on such date.
(c) ADJUSTMENTS TO CONVERSION PRICES FOR STOCK DIVIDENDS AND FOR
COMBINATIONS OR SUBDIVISIONS OF COMMON STOCK. In the event that this Corporation
at any time or from time to time
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<PAGE>
after the original issuance date of the Class A Preferred Stock shall declare or
pay, without consideration, any dividend on the Common Stock payable in Common
Stock or in any right to acquire Common Stock for no consideration, or shall
effect a subdivision of the outstanding shares of Common Stock into a greater
number of shares of Common Stock (by stock split, reclassification or otherwise
than by payment of a dividend in Common Stock or in any right to acquire Common
Stock), or in the event the outstanding shares of Common Stock shall be combined
or consolidated, by reclassification or otherwise, into a lesser number of
shares of Common Stock, then the Conversion Price for the Class A Convertible
Preferred Stock in effect immediately prior to such event shall, concurrently
with the effectiveness of such event, be proportionately decreased or increased,
as appropriate. In the event that this Corporation shall declare or pay, without
consideration, any dividend on the Common Stock payable in any right to acquire
Common Stock for no consideration, then the Corporation shall be deemed to have
made a dividend payable in Common Stock in an amount of shares equal to the
maximum number of shares issuable upon exercise of such rights to acquire Common
Stock.
(d) ADJUSTMENTS FOR RECLASSIFICATION AND REORGANIZATION. If the Common
Stock issuable upon conversion of the Class A Convertible Preferred Stock shall
be changed into the same or a different number of shares of any other class or
classes of stock or other securities or assets, whether by capital
reorganization, reclassification, consolidation or merger of the Corporation
with another corporation, or the sale of all or substantially all its assets to
another corporation, or otherwise (other than a subdivision or combination of
shares provided for in Section 4(c) above), then, as a condition of such
reorganization, reclassification, consolidation, merger or sale, lawful and
adequate provision shall be made whereby the holders of Class A Convertible
Preferred Stock shall thereafter have the right to receive upon the basis and
upon the terms and conditions specified herein and in lieu of the shares of
Common Stock of the Corporation immediately theretofore receivable upon the
conversion of Class A Convertible Preferred Stock, such shares of stock,
securities or assets as may be issued or payable with respect to or in exchange
for a number of outstanding shares of Common Stock equal to the number of shares
of such Common Stock immediately theretofore receivable upon the conversion of
Class A Convertible Preferred Stock had such reorganization, reclassification,
consolidation, merger or sale not taken place, plus all dividends unpaid and
accumulated or accrued thereon to the date of such reorganization,
reclassification, consolidation, merger or sale, and in any such case
appropriate provision shall be made with respect to the rights and interests of
the holders of Class A Convertible Preferred Stock to the end that the
provisions hereof (including without limitation provisions for adjustment of the
Conversion Price and of the number of shares receivable upon the conversion of
Class A Convertible Preferred Stock) shall thereafter be applicable, as nearly
as may be in relation to any shares of stock, securities or assets thereafter
receivable upon the conversion of Class A Convertible Preferred Stock. The
Corporation shall not effect any such consolidation, merger or sale, unless
prior to the consummation thereof the successor corporation (if other than the
Corporation) resulting from such consolidation or merger or the corporation
purchasing such assets shall assume by written instrument executed and mailed to
the holders of Class A Convertible Preferred Stock, at the last addresses of
such holders appearing on the books of the Corporation, the obligation to
deliver to such holder such shares of stock, securities or assets as, in
accordance with the foregoing provisions,
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<PAGE>
such holder may be entitled to receive.
(e) CERTIFICATES AS TO ADJUSTMENTS. Upon the occurrence of each
adjustment or readjustment of any Conversion Price pursuant to this Section 4,
the Corporation at its expense shall promptly compute such adjustment or
readjustment in accordance with the terms hereof and prepare and furnish to each
holder of Class A Convertible Preferred Stock a certificate executed by the
Corporation's President or Chief Financial Officer setting forth such adjustment
or readjustment and showing in detail the facts upon which such adjustment or
readjustment is based. The Corporation shall, upon the written request at any
time of any holder of Class A Convertible Preferred Stock, furnish or cause to
be furnished to such holder of Class A Convertible Preferred Stock, furnish or
cause to be furnished to such holder a like certificate setting forth (i) such
adjustment and readjustments, (ii) the Conversion Price for such series of Class
A Convertible Preferred Stock at the time in effect, and (iii) the number of
shares of Common Stock and the amount, if any, of other property which at the
time would be received upon the conversion of the Class A Convertible Preferred
Stock.
(f) RESERVATION OF STOCK ISSUABLE UPON CONVERSION. The Corporation
shall at all times reserve and keep available out of its authorized but unissued
shares of Common Stock, solely for the purpose of effecting the conversion of
the shares of the Class A Convertible Preferred Stock, such number of its shares
of Common Stock as shall from time to time be sufficient to effect the
conversion of all outstanding shares of the Class A Convertible Preferred Stock;
and if at any time the number of authorized but unissued shares of Common Stock
shall not be sufficient to effect the conversion of all then outstanding shares
of the Class A Convertible Preferred Stock, the Corporation will take such
corporate action as may, in the opinion of its counsel, be necessary to increase
its authorized but unissued shares of Common Stock to such number of shares as
shall be sufficient for such purpose, including, without limitation, engaging in
best efforts to obtain the requisite shareholder approval of any necessary
amendment to the Corporation's Articles of Incorporation.
(g) FRACTIONAL SHARES. No fractional share shall be issued upon the
conversion of any share or shares of Class A Convertible Preferred Stock. All
shares of Common Stock (including fractions thereof) issuable upon conversion of
more than one share of Class A Convertible Preferred Stock by a holder thereof
shall be aggregated for purposes of determining whether the conversion would
result in the issuance of any fractional shares. If, after the aforementioned
aggregation, the conversion would result in the issuance of a fraction of a
share of Common Stock, the Corporation shall, in lieu of issuing any fractional
share, pay the holder otherwise entitled to such fraction a sum in cash equal to
the fair market value of such fraction on the date of conversion.
(h) NOTICES. Any notice required by the provisions of this Section 4 to
be given to the holders of shares of Class A Convertible Preferred Stock shall
be deemed given if deposited in the United States mail, postage prepaid, and
addressed to each holder of record at his address appearing on the books of the
Corporation.
5
<PAGE>
5. REDEMPTION.
(a) OPTIONAL REDEMPTION PRIOR TO APRIL 1, 2001. Commencing on April 1,
1999, on not less than thirty (30) days prior written notice, the Corporation
shall have the option to redeem the Class A Convertible Preferred Stock at a
redemption price of $2.50 per share, if the last sale price for the Company's
Common Stock equals or exceeds 160% of the Conversion Price for ten (10)
consecutive trading days within the ten calendar days of the date of call.
(b) OPTIONAL REDEMPTION ON OR AFTER APRIL 1, 2001. The Corporation
shall also have the option to redeem the Class A Convertible Preferred in whole
or in part at a price of $2.50 on or after April 1, 2001. Any redemption
pursuant to this Section 5 (b) shall be pro rata among all remaining preferred
stockholders based upon their holdings on the date of call.
(c) MECHANICS OF REDEMPTION. If the Corporation desires to exercise its
right to redeem the Class A Convertible Preferred Stock, it shall mail a notice
of redemption to each of the holders of the Class A Convertible Preferred Stock,
first class, postage prepaid, not later than the thirtieth day before the date
fixed for redemption, at their last address as shall appear on the records of
the Corporation. Any notice mailed in this manner shall be conclusively presumed
to have been duly given whether or not the holder receives such notice.
(d) NOTICE OF REDEMPTION. The notice of redemption shall specify (i)
the redemption price, (ii) the date fixed for redemption (the "Redemption
Date"), (iii) the place where the Class A Convertible Preferred Certificates
shall be delivered and the redemption price paid, and (iv) the right to convert
the shares of the Class A Convertible Preferred Stock into the Corporation's
Common Stock shall terminate at 5:00 pm (Minneapolis time) on the business day
immediately preceding the date fixed for redemption. No failure to mail such
notice nor any defect therein or in the mailing shall affect the validity of the
proceedings for such redemption except as to a holder (a) to whom notice was not
mailed or (b) whose notice was defective. An affidavit of the Secretary of the
Corporation that notice of redemption has been mailed shall, in the absence of
fraud, be prima facie evidence of the facts stated therein.
(e) TERMINATION OF CONVERSION RIGHTS. Any right to convert any share of
Class A Convertible Preferred Stock into Common Stock of the Corporation that
has been called for redemption shall terminate at 5:00 p.m. (Minneapolis time)
on the business day immediately preceding the Redemption Date. On and after the
Redemption Date, holders of the redeemed Class A Convertible Preferred Stock
shall have no further rights except as to receive, upon surrender of the
redeemed Class A Convertible Preferred Stock, the Redemption Price.
(f) PAYMENT OF REDEMPTION PRICE. From and after the date specified for
redemption, the Corporation shall, at the place specified in the notice of
redemption, upon presentation and surrender to the Corporation by or on behalf
of the holder of any shares of Class A Convertible Preferred Stock to
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<PAGE>
be redeemed, deliver, or cause to be delivered to, or upon the written order of
such holder a sum in cash equal to the Redemption Price for each such share of
Class A Convertible Preferred Stock. From and after the date fixed for such
redemption and upon the deposit or setting aside by the Corporation of a sum
sufficient to redeem all of the shares of Class A Convertible Preferred Stock
called for redemption, such shares of Class A Convertible Preferred Stock shall
expire and become void and all rights hereunder, except the right to receive the
Redemption Price, shall cease.
6. AMENDMENT
This Certificate of Rights and Preferences may not be amended without
the consent of the holders of a majority of Class A Convertible Preferred Stock.
MINNESOTA BREWING COMPANY
By:
------------------------------------
Its: President
7
