CMG Holdings Group Inc (CMGO)

[Powercat23]

I have some questions on these new preferred shares - I'd be curious to get anyone else's input on a couple questions.

1. In reading the PR, it sounds as though the conversion from common to preferred would be voluntary because it says "If fully subscribed..." which I take to mean if everyone does it. Is that everyone else's impression as well?

2. If it is voluntary, I'm trying to find the benefit in doing that and here's why. Assume CMGO is victorious in the litigation and end up with $10-20M in cash so they have the money to fund this conversion. If I own 1 million shares and decide to convert, those 1 million shares become 20,000 shares. It sounds like I will then get paid $20,000 out of the winnings. And if we assume we win and conservatively speaking, the share price goes to $0.02, let's say, my shares are worth $400. So at that point, I'm sitting with $20,400. If I don't convert and I just keep my 1 million shares, with a price of $0.02, I'm at $20,000. And then in future months and years, assuming XA becomes profitable and Good Gaming takes off, maybe shares are worth $0.05. I then would have $21,000 if I converted vs. $50,000 if I don't.

I know there are a lot of assumptions in this case, but I'm trying to think ahead if the company wins the lawsuit and is able to get XA/GG profitable again - I don't see how it would be in my interest to convert unless I'm missing something.