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Re: MNYC post# 986

Sunday, 12/19/2010 10:04:47 AM

Sunday, December 19, 2010 10:04:47 AM

Post# of 4012
RNRG Preferred Shares - Anti-dilutive:

Revonergy raising money the right way!

http://www.bukisa.com/articles/360479_an-introduction-to-preferred-shares

"Occasionally companies use preferred shares as a means to prevent hostile takeovers, creating preferred shares with a poison pill or forced exchange exercised when there is a change of control."

"Some corporations contain provisions in writing authorizing the issuance of preferred shares whose terms and conditions can be determined by the board of directors when issued. These preference shares of "blank check" are often used as a defense of a hostile takeover. These actions can be assigned a high liquidation value that must be paid in case of a change of control or can have enormous voting"

Hmm...high liquidation value, such as the $10 per preferred share that Revonergy assigned according to their filings? They want to avoid a hostile takeover, I wonder why? Most worthless penny stock companies are begging for investors to buy up their worthless shares and take the company off their hands, NOT Revonergy.

Preferred shares, $10 a share, redeemable after 5 years! No discounts or toxic financing here. Finally, a small-cap company who understands how to raise money the right way!

http://www.startupcompanylawyer.com/2007/07/28/what-is-anti-dilution-protection/

"Almost all venture financings have some form of anti-dilution protection for investors. In the context of a venture financing, anti-dilution protection refers to protection from dilution when shares of stock of stock are sold at a price per share less than the price paid by earlier investors. This is known as price-based anti-dilution protection. Anti-dilution protection, along with the liquidation preference, are two of the fundamental features distinguishing preferred stock typically sold to investors from common stock generally held by founders and employees.

Preferred stock is normally convertible at the option of the holder at any time into common stock, usually on a share for share basis, and is typically automatically converted upon the occurrence of a qualified initial public offering. Price-based anti-dilution adjustments involve increasing the number of shares of common stock into which each share of preferred stock is convertible."

And now read the way Revonergy is going about raising the money needed to grow:

http://finance.yahoo.com/news/Revonergy-Announces-500000-iw-456741658.html?x=0&.v=1

"Revonergy Inc. has confirmed that it has signed a Preferred Stock Purchase Agreement with Kodiak Capital Group, LLC. Under the terms of the agreement, Kodiak will purchase up to 50,000 shares of Revonergy's Series A Redeemable Preferred Stock at $10 per share, in one or more tranches, for a total investment amount of up to $500,000. At closing Kodiak will receive five year warrants to purchase 3,750,000 common shares of Revonergy."

Thank you Revonergy for respecting your shareholders and investors. No wonder Vitol S.A. is in business with you guys.



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