Yes, that was the preferred Series C. It was all part of Shykora's involvement with Canadian promoter Javan King. King had a promotional idea that he tried to sell to just about every penny issuer out there: you could "eliminate debt from the balance sheet" by converting it to convertible preferred. Duh. You still owe those people money. Another of King's ideas was that you could use convertible preferred "like currency".
AND you could get your stock price up by giving ordinary shareholders preferred stock. The idea worked like this: you'd designate a new series of preferred--let's call it Series C--and distribute it to holders of commons on a pro rata basis. Then you'd do a gigantic reverse split, pretty much eliminating the commons. And then you'd have the holders of your new Series C convert their stock back to commons, but at a higher price than before, as set forth in the designation for the series.
The trouble was that the companies that did these distributions did them illegally. One was CDFT; it was a total mess, and was suspended in March 2014. Another was ANDI. Shykora, like the CEO of CDFT, didn't bother to get FINRA to process a dividend paid in Series C preferred; he just asked shareholders to send in screenshots of their brokerage account statements that indicated how much ANDI they owned. And then he sent them certs. Unfortunately, he screwed that part up badly. On the recto, they said "Series C"; on the verso, they said "Series H". He sent people who got them a little adhesive sticker with "C" printed on it that they could use to "fix" the mistake. Just pathetic.
The next step would have been to do a big reverse split of the commons, and then ask shareholders to convert their Series C to commons. But for some reason that never happened. Shykora resigned in early 2014, and no subsequent CEO has allowed holders of Series C to convert.
So... I don't think White's planning on repeating that mistake.
