SorryJeff, I Believe Preferred Can Convert Anytime, BUT...
If a Preferred Shareholder chooses to convert when the common share PPS is at or below $0.855, the conversion gives them I believe, about 29 common shares for every Preferred Share they convert, which is the maximum allowed. Meaning, if the common PPS dropped to $0.01 one might think every preferred share converted would receive 2500 shares of common, but they are limited by the maximum conversion rate if they choose to voluntarily convert their shares.
On the other hand, I don't remember if it is exactly 29 shares common, or if it is the current value of the Preferred Share PPS divided by 0.855 as long as the common PPS is at or below $0.855
You seem to have merged the voluntary conversion available to all preferred share owners and Change of Control Forced Liquidation scenario, imho, at least that is what I believe I read in the Prospectus...
But, I don't know what happens if a prferred share owner would convert to common, when does it gets reported. During AfterHours Trading? Does PPHM have to issue a PR stating shares were converted? Do they have 3 days to report? Must they PR every Preferred to Common Conversion Transaction separately? Or, is it possible they are only required to report Preferred to Common Conversions once per quarter like they do when reporting ATM shares... they don't report ATM daily, right?!!
Again, I have no idea about the reporting requirements and therefore I have to wonder if the PPS was manipulated to this point with conversion as a goal, how would we know shares were converted?
Can anyone share their thoughts??? Sorry, but I don't currently have time to copy paste the Preferred Prospectus, but, if necessary, I can post later. (Of course, it is possible I am remembering incorrectly, hence I am asking the board for confirmation and consideration).
Glta Stockholders... Common Stockholders in particular!!!
