"Brings to mind InvestorStemCell's theory"??
Well, except for the fact it has nothing to do with any preferred share being "converted". All the form does is state how many shares (common and preferred) they hold as of the filing- and it's sitting right at 20 million preferred shares, same as in the past. Same as it's been for at least a yr or so, starting with 5 million preferred, then later 15 million more were added, bringing it to 20 million total. Where is that number changed in this form 13G amended filing? The only thing changed is the common shares held and the percentage of the total holders number, the 13.3%. There no "conversion of preferred" taking place? Where?
From the past 10-K filing, year end 2013 PAGE 63:
"In connection with the consideration paid, Northstar waived, from the effective date through the earlier of termination or expiration of the agreement, satisfaction of the obligations as described in the forbearance agreement. In 2012, 5,000,000 shares of Series A Convertible Preferred Stock were approved to be issued. In addition, the Company is obligated to issue additional preferred stock equal in lieu of payment of cash of accrued and unpaid interest on each six month anniversary of the effective date (October 1, 2012). In lieu of the initial two payments in preferred stock, the parties have determined to modify the voting rights of the Series A Convertible Preferred Stock from 20 votes per share on matters to be voted on by the common stock holders to 25 votes per share on matters to be voted on by the common stock holders and all prior and subsequent payments of interest will be in common stock; payments of common stock for April 1, 2013 and October 1, 2013 were made the fourth quarter of 2013 based on the closing price of the common stock on April 1, 2013 and October 1, 2013 respectively.
As described above, during the year ended December 31, 2013, the Company issued the 5,000,000 shares of Series A Convertible Preferred Stock and the 10,000,000 of common stock described above in exchange for the $210,000 as payment towards outstanding principle of the debt. In addition, the Company issued 15,000,000 shares of Series A Convertible Preferred Stock as a penalty in settlement of the terms of the forbearance agreement."
So there's the 20 million preferred issued, all in that statement. They got 10 million "common" shares right then too.
So somehow, those 10 million common shares have now grown to 31,853,696 common now in Aug 2014. So they must of paid Northstar some loan payments maybe (which is interesting as this latest 10-Q just filed din't indicate that, that I could find), or Northstar exercised some warrants maybe? Who knows? But their common shares holding appear to have increased from 10 million to 31 million and change, and their total ownership increased from 9.3% in the last 10-K, yr end 2013 to now 13.3%. There's been no change though in their preferred share count they hold- no supposed "conversion" going on IMO. Where is it shown?
AI
