ZA Group Inc (ZAAG)

[wallstreet1231]

Hopefully my email addresses what I know about series E preferred. I really don't know how many Series E preferred shares were issued prior to changing the par rate but 1) they had 70m authorized to issue - this amount has since been reduced to 36m shares and 2) my understanding is the previous CEO surrendered her Preferred E shares.

Let's assume that 10m Preferred shares were issued last year, but who know it could be more or less. These 10m preferred shares would convert to 1,000,000,000,000 which I believe equals a trillion common shares. One could ask how would the company be able to concert this many which exceeds the authorized amount of common shares - per the Series E preferred document they would issue more shares - refer to Paragraph 1.4 (c) which stipulates this. Here is the link.
https://www.otciq.com/otciq/ajax/showFinancialReportById.pdf?id=101220



Now you can understand why I disagree with the current value of common shares being a good deal/buy.

The above is my opinion and as a disclosure I do own preferred shares. My hunch is that the new management will try and negotiate with series E holders - from my perspective this is the elephant in the room for them. Again, series E shares were acquired by investors and not part of the free shares of series H etc.

My opinions as always - I encourage everyone to do their own research.