SiNtx Technologies Inc (SINT)

[SmokerX]

This is a legitimate concern in this example: If you where a tricky CEO you issue preferred and common. Knowing a buyout is a distinct possibility your buddies own preferred and do not convert. Upon buyout the buyout price for common is slightly higher than a VWAP. The real money is in the valuation of preferred buyout. This is a target in arbitrage as you hold the preferred while shorting the common. This example is not happening here as preferred is consistently converted to common.