ZA Group Inc (ZAAG)

[benosufan]

After a little digging I found some details on those CDIF preferred series F shares obtained in the We Three LLC deal. According to the 8k, ARNH was given approximately 400,000 series F valued at $2.50 each which is why they said We Three LLC was worth 1 million dollars. That is laughable at best since each series F share is only convertible to 5 common shares of CDIF. It is trading at .0005 to .0007/share most recently.

http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=9648358

III. CONVERSION . In the event of a conversion of shares (the “ Conversion ”) of each Share Class of Preferred Stock to shares of Common Stock, par value $.001 per share (the “ Common Stock ”), each one share of Series Share Class of Preferred Stock shall be converted up to five (5) shares of Common Stock.

Am I missing something here? Would you buy those preferred series F shares for 2.50 each only to convert the 400,000 preferred to 2 million commons worth .0007/share? That makes no sense but CDIF filings show that's what they are doing. CDIF just filed to create more preferred series shares, similar to what Kathy did here. They are acquiring businesses using the preferred shares. She just moved on to the next ticker. Watch for a R/S there later this year IMO. Look at the dilution/volume recently in the chart.