Demand Brands Inc. (DMAN)

[the1legbandit]

PER KEEK989

The Series C Preferred Stock is convertible into Common Stock at the election of the holder at $.20 per share and also has preferential liquidation rights. The Company had 9,960,000,000 shares of Common Stock authorized and 4,254,777,485 issued and outstanding as of December 31, 2015. On February 25, 2016 the Company decreased the number of Common Stock authorized to 5,560,000,000. As part of a capital restructuring the Company intends to convert its Series C Preferred Stock into restricted common shares and to reverse split its common shares in 2016. Soo…does this mean that the Series C Preferred Stock is converted at $.20 FIRST, and then the Reverse Split? Someone correct me if I’m wrong. The last part of the filings states- Convert its Series C Preferred Stock into restricted common shares and then R/S. 2 paragraphs up, it states- the Series C Preferred Stock is convertible at $.20 per share. Also, if the current issued and outstanding is4,254,777,485 and the authorized is5,560,000,000 that leaves room for1,305,222,515 shares that may hit the market from any conversions. The filings also state= During the 4th Quarter of 2015 the Company issued 775,000,000 shares of its Common Stock in connection with debt retirement and Preferred Stock conversions. IMO they would only R/S AFTER all conversions and the entire share structure is locked.