ZA Group Inc (ZAAG)

[wallstreet1231]

The arnh share structure is, in my opinion, mind boggling. At present it is reported that there are over 4 billion shares issued. While quite large this isn't in my opinion the white elephant. The white elephant is the Preferred e shares that are issued - they convert at a rate of 100,000 common shares per one series e preferred share. This equates to 2.5 trillion shares of common stock. The series e shares are anti dilutive and not subject to reverse splits. Almost 4.9 m shares of preferred e shares were issued for the identity theft cards. Another 50,000 preferred e shares were gifted by Kathy Roberton to individuals. And any par rate change will not effect the conversation of preferred shares to commons - this has been confirmed. So, how does arnh cone up with trillions of common shares. How could they have issued so many preferred shares knowing the authorization of trillions of common shares is unlikely. This appears to be one issue was this even legal to do? Yes, the white elephant in the room is huge.