Bravatek Solutions Inc (BVTK)

[TenKay]

It’s convertible preferred stock. The $24 is an arbitrary value for the purposes of the conversion calculation. It could be 1,000,000 shares at $2.40 each.

The pref stock has no market itself and no voting rights. After six months it will be convertible into common stock by dividing the pps of the common stock at that time into the $24 for each pref D share to convert.

So if the pps is $0.003 at the time of conversions then each share of pref D converts to $24/$0.003 = 8000 shares of common stock.

So the $2.4 million comes to the Helpcomm owners by converting the pref D and selling the common stock they receive into the market. Shareholders are paying for the acquisition.

The reason they don’t just pay with common stock now is the convertible preferred protects the Helpcomm sellers from drops in the price of the stock during the six month holding period when they can’t sell and also protects them against a reverse split.