I have a fairly high level of trust for Daniel (still not thrilled with how some of this has played out), so I may see it different than you. But here's one possible way to look at it:
- converting Preferred to CS gives DY much higher stake in the current share structure. In other words, he'd lose millions if the company then did a 2500:1 RS. If he was going to surreptitiously do a RS to inflate his value (preferred shares) and kill ours, why wouldn't he have waited until after the RS for the conversion? That would have made much more sense...right? Otherwise it's like buying a new car, then immediately pushing it off a cliff.
- Could DY just dump the shares on the market and pocket the cash? Yes...but it would only work for about 15 minutes, assuming he was trying to pocket enough money for him to risk the rest of his career on. After that the SP would collapse, everyone's shares would be close to worthless, and his career would be RUINED. That just doesn't make sense to me.
- a number of M&A possibilities have been floated on this board. If, for example, MYDX wanted to acquire 50% of (pick your favorite option - maybe Ganja Gold), they'd need to tender a lot of shares to make the buyout work. I believe that's what these "extra" shares are intended for.
But, in the end, I have access to the same info as everyone else, so of course this is all just "IMO." As I've said before, the view that everyone has is skewed strongly by what level of trust they feel for DY.
