Elite Pharmaceuticals Inc (ELTP)

[Sankarad1]

On one side, Elite hires a director experienced in M&A and buyouts. Usually when such people are hired, buyouts/ M&A should be happening within about 6 months

On the other side, Nasrat converts his common stock into preferred stock, in anticipation of potential help to be sought from Lincoln. This indicates that Elite foresees seeking financing help without having to immediately increasing the shelf of shares. He will not have to do this if he is foreseeing an M&A or a buyout.

How to explain this conflict?