Riverhawk Aviation, Inc. (fka RHWA)

[skunksyard]

guellen,

could it be to lower the shares to get attractive financing? It may have been a requirement of the bank if they are going that route? If you have 800mil shares the pps isn't attractive to banks I don't think....1mil shares and a pps that demonstrates to a bank that the loan can be supported. I know if the value of the shares in companies go down the banks holding the notes start negotiations because their investment is in jeopardy....I'm thinking it's this plain and simple. (I'm hoping)....

My thinking then goes to what kind of conversion will he give to shareholders? to preferred then back to common stock....I think you can conclude in one year he doesn't want 800 mil on the market and in one of the companies I read the converted from pfd to common and then immediately r/s 1 for 7 to reduce the float...but think about this.....if currently shareholders are going to lose 799 for each 800 they own without conversion....conversion has to be attractive or he wouldn't go through that exercise. He would simply r/s like so many others and say see you later. Now with a 1mil or so float what do you think the pps will look like in 12 months? and even if we only ended up with 25% of our shares...this could end up being not so bad.

Bottom line to me is no one will take him seriously with a .0076 or .0021 stock price so I can see (while I'm not happy) why he did this and I really want to think that sentence on the conversion is to tell the rest of us that in one year you may be better off if there is a decent share price....

just my thinking