CMG Holdings Group Inc (CMGO)

[iPickle]

No AS increase? Too weird! What happens next for CMGO?


As part of the financial plan, CMG Holdings is creating a new class of series A preferred shares that will have first priority payout from any litigation settlement. The Company is currently in discussions with SEC counsel and investment bankers to launch an exchange offer for these series A preferred shares for publicly traded CMGO common shares. Under the anticipated program, which is expected to be launched as early as this summer, CMGs Board of Directors expects to authorize a total of 4 million series A preferred shares with a liquidation preference of $1 dollar per share, an annual dividend yield of 5% and a perpetual time horizon. Each series A share shall be exchanged for 50 common shares, which will subsequently be returned to treasury. If fully subscribed, including reserves for future dividends, this exchange program would reduce CMGs common shares outstanding by up to 175 million.