Bakken Resources (fka BKKN)

[The Scavenger]

I have not had time to read the entire agreement, but according to the 8-K the conversion to preferred has to be triggered by a change in control.

From the 8-K:

"The Facility is unsecured, but upon certain triggering events generally described as changes in control of the Company, loans under the Facility are convertible into shares of a newly-designated class of the Company’s Series A Preferred stock"

The question is, what is a triggering event and how is change in control defined. Other provisions may come into play as well. So in other words, it will be treated as a loan unless there is a triggering event. The default language will also be important.