This excerpt taken from the WBMD 8-K filed Nov 21, 2006.
In August 2000, the Company increased its authorized shares of preferred stock, par value $0.0001, to 34,000,000 shares from 10,703,000 shares. Of the total shares authorized, 3,000 shares are designated as Class A, 9,500,000 shares are designated as Class B1, 1,200,000 shares are designated as Class B2, 9,200,000 shares are designated as Class B3, 1,200,000 shares are designated as Class B4, 10,000,000 shares are designated as Class C preferred and 2,897,000 shares are not designated.
In August and October 2000, the Company issued 4,901,529 and 324,367 shares of Class C preferred, respectively, for aggregate proceeds of approximately $25,979,000, net of related issuance costs of approximately $150,000. In connection with this offering, 6,524,471 shares of Class B1 convertible preferred stock were exchanged for Series B3 convertible preferred stock on a one-for-one basis and 1,000,000 shares of Class B2 convertible preferred stock were exchanged for Class B4 convertible preferred stock on a one-for-one basis. The terms and conditions of the B1 and B3 convertible preferred stock are substantially similar as are those of the B2 and B4 convertible preferred stock.
In September 2001, at a request of a stockholder, the Company repurchased 909,091 shares of Class B1 convertible preferred stock, including all rights to dividends, distributions or interest, if any, for a cash consideration of $1.00. The related shares were subsequently cancelled. Accordingly, the Company recorded the pro rata value of the shares of approximately $4,693,000 as a reduction to preferred stock and an addition to additional paid-in capital.
The following summarizes each class of preferred stock: