I disagree. The preferred shares are not traded separately ... The only way to profits on those shares at .001 par value is to convert them at some point ...
It all depends against which financial risk they are going to get these preferred shares ...
If it against considerable financing , it's all good .
If it's "for free" , this is a red flag ...
“The majority see the obstacles; the few see the objectives; history records the successes of the latter, while oblivion is the reward of the former.”
Alfred A. Montapert