STRATOS MANAGEMENT SYSTEMS HOLDINGS LLC - 08 Sep 2021 Form 4 Insider Report for American Virtual Cloud Technologies, Inc.

Role: 10%+ Owner
Signature: Stratos Management Systems Holdings LLC By: /s/ Lawrence E. Mock, Chief Executive Officer and President
Issuer symbol: N/A
Transactions as of: 08 Sep 2021
Net transactions value: -$20,000,020
Form type: 4
Filing time: 14 Sep 2021, 21:56:45 UTC
Next filing: 01 Nov 2021
SEC: View on sec.gov

Transactions Table

Type	Sym	Class	Transaction	Value $	Shares	Change %	* Price $	Shares After	Date	Ownership	Footnotes
transaction	AVCT	Common Stock	Conversion of derivative security		+6,673,731	+80%		14,980,452	08 Sep 2021	Direct	F1
transaction	AVCT	Common Stock	Exercise of in-the-money or at-the-money derivative security	$20,000	+2,000,000	+13%	$0.0100^*	16,980,452	10 Sep 2021	Direct
transaction	AVCT	Common Stock	Sale	$20,020	-5,005	-0.03%	$4.00^*	16,975,447	10 Sep 2021	Direct	F2

Derivative Securities (e.g., puts, calls, warrants, options, convertible securities)

Type	Sym	Class	Transaction	Value $	Shares	Change %	* Price $	Shares After	Date	Underlying Class	Amount	Exercise Price	Ownership	Footnotes
transaction	AVCT	Series A Convertible Debentures	Conversion of derivative security	$20,000,000				0	08 Sep 2021	Common Stock	6,673,731		Direct	F1
transaction	AVCT	Warrants	Exercise of in-the-money or at-the-money derivative security	$0	-2,000,000	-100%	$0.000000^*	0	10 Sep 2021	Common Stock	2,000,000	$0.0100	Direct

* An asterisk sign (*) next to the price indicates that the price is likely invalid.

Explanation of Responses:

Id	Content
F1	On September 8, 2021, the unpaid principal amount (together with all accrued but unpaid interest thereon) of the Series A Convertible Debentures automatically converted into shares of the Issuer's common stock, par value $0.001 per share (the "Common Stock") at a conversion price of $3.45 (the "Mandatory Conversions"). The Mandatory Conversions were triggered by the closing price of the Common Stock on the Nasdaq Capital Market exceeding $6.00 for 40 trading days within a consecutive 60 trading day-period. The Reporting Person's Form 4 filed on September 10, 2021 inadvertently failed to report this transaction.
F2	On September 10, 2021, the Reporting Person elected to exercise each of its 20,000 warrants (each such warrant entitling the holder thereof to purchase 100 shares of the Common Stock at a price of $0.01 per share), and paid the exercise price on a cashless basis, resulting in the Issuer's withholding of 5,005 of the warrant shares to pay the exercise price and issuing to the Reporting Person the remaining 1,994,995 shares of Common Stock.

Content

On September 8, 2021, the unpaid principal amount (together with all accrued but unpaid interest thereon) of the Series A Convertible Debentures automatically converted into shares of the Issuer's common stock, par value $0.001 per share (the "Common Stock") at a conversion price of $3.45 (the "Mandatory Conversions"). The Mandatory Conversions were triggered by the closing price of the Common Stock on the Nasdaq Capital Market exceeding $6.00 for 40 trading days within a consecutive 60 trading day-period. The Reporting Person's Form 4 filed on September 10, 2021 inadvertently failed to report this transaction.

On September 10, 2021, the Reporting Person elected to exercise each of its 20,000 warrants (each such warrant entitling the holder thereof to purchase 100 shares of the Common Stock at a price of $0.01 per share), and paid the exercise price on a cashless basis, resulting in the Issuer's withholding of 5,005 of the warrant shares to pay the exercise price and issuing to the Reporting Person the remaining 1,994,995 shares of Common Stock.