HydroPhi Technologies Group Inc. (fka HPTG)

[WealthWithoutGreed]

This is a good question.

Sounds like they can convert the preferred shares they receive into 80% of the issued common stock shares of HTPG. Additionally they have the right to convert the $2.5 million note into 4.9% of HPTG common stock. Combined, you get a potential 84.9% ownership of HTPG.

Not sure I'm interpreting correctly.

From the 8-k:

"d)
Equity. Buyer will issue a unit of its Series A Convertible Preferred Stock of Buyer (“Preferred Stock”). The unit of Preferred Stock (“Unit One”) will be issued to the Seller, and be convertible into 80% of the issued and outstanding common stock of Buyer on a fully-diluted basis, and will be convertible into shares of common stock, par value $0.0001 per share, of the Buyer (the “Common Stock”), beginning on the six month anniversary of the date of its issuance. In addition, Seller shall receive a goldenshare warrant (“Goldenshare”), which will be exercisable for that number of shares of Common Stock required to insure that Unit One and the Promissory Notes shall always be convertible into an aggregate of 84.9% of the then fully-diluted issued and outstanding capital stock of Buyer. Unit One and the Goldenshare shall bear such restrictive legends as are required under applicable Law."