Atlantic Power & Infrastructure Corp. (AWSL)

[Gilda99]

Diag, we should have seen this coming after the issuance of the 2016 financials. Here's a portion of the footnote #3 relative to the series B preferred shares.

The series B preferred stock carries an annual dividend of 8% which is generally paid quarterly by issuing additional shares of series B preferred stock. On May 1, 2015, the Company amended the rights of the series B preferred shares to not carry a dividend at which point all dividends owing were settled by the issuance of additional series B preferred shares. We issued 145,063 shares for dividends during the year ended December 31, 2015.

The insiders holding the series B preferred stock haven't received any dividends since 2015; hence, they could see the company's future, which was somewhere between BLEAK and nonexistent. In effect, it appears that it was *** GAME OVER *** after 2016. It just took a while for management to walk away from the illusion that $AWSL was a going concern. The only thing growing after 2016 was the deferred tax asset, which was already grossly overstated absent any meaningful discount for valuation allowance.

https://backend.otcmarkets.com/otcapi/company/financial-report/168422/content

Of course, I welcome an informed counterpoint to my observation,

Gilda

Thanks Gilda, they seem to be within spitting distance of positive equity - not so much for common shareholders though. I guess 2014 will be "the" year for AWSL.

Does anyone know of their intention with respect to the preferred shares? Is it a company priority to retire these and clear the way for outsiders to benefit from an investment in AWSL? CAN they even retire them before 2018? etc. 12% seems like a significant cash drain to me if their projects are revenue positive...