Can anyone tell the board what the exact rights (including VOTING RIGHTS) and CONVERSION into common shares each share of Preferred Series A and Preferred Series B shares has?
"The Company is authorized to issue up to 10,000,000 shares of Preferred Stock, $.001 par value per share, of which 800,000 shares of Series A convertible preferred stock are outstanding at September 30, 2014 and December 31, 2013. The Preferred Stock may be issued in one or more series, the terms of which may be determined at the time of issuance by the Board of Directors, without further action by stockholders, and may include voting rights (including the right to vote as a series on particular matters), preferences as to dividends and liquidation, conversion, redemption rights and sinking fund provisions.
Each share of Series A Preferred Stock shall bear a preferential dividend of twelve percent (12%) per year and is convertible into a number shares of the Company's common stock, par value $.001 per share ("Common Stock") based upon Fifty (50%) percent of the average closing bid price of the Common Stock During the ten (10) day period prior to the conversion. The Company has not declared or accrued any dividends and as of September 30, 2014 unaccrued and undeclared dividends were $3,600.
On July 2, 2014, the Company issued 10,000 shares of the Company's Series B Preferred Stock. There is currently no market for the shares of Series B Preferred Stock and cannot be converted into shares of common stock of the Company. The Company received no cash proceeds from the issuance of the shares Each share of Series B preferred stock shall be strictly limited and not to be available for transfer or re sale unless authorized by a majority of a quorum of the Board of Directors in accordance with the Company's Bylaws. The Preferred Series B do not contain any rights to dividends; have no liquidation preference; are not to be amended without the holders approval. The company had a valuation completed and as a result expensed the value of the preferred B during the quarter at a value of $76,000.
SO, what is the NUMBER of shares a Series A Preferred converts into?
How many votes and what are the voting rights of Series A preferred?
SO, what is the NUMBER of shares a Series B Preferred converts into?
How many votes and what are the voting rights of Series B preferred?
Since 800,000 shares of Series A Preferred are issued - how many common shares does that convert into?
