Ah well that is a more complex situation than the question present. It all comes down to what "rights" the pref shares have. Some pref shares get diviends, some have full voting rights, some are able to convert at insane rates into common shares a-la DILUTION. IMO I would much rather only common shares. The thing I'd like to note about the situation with management's shares is they can't simply sell into the market (very very unlikely). When you own that much of a company and you're a director you are supposed to file an 8k to sell those shares. Now technically they were supposed to file an 8k in order to buy the shares years ago but I wouldn't be surprised if they did and it jsut didn't get picked up. Now let's assume they don't need to file an 8k and are able to sell shares freely into the market (perhaps european standards are a little diffrerent) - they are very smart people and will likely just set up ask limits and let the bidders come to them. The reason is if they market dump their stake the executed prices would be terrible for them and then the bulls would fill the gap and they'd be very sad individuals. Another point - on the q4 they showed float as 318m. Float is total O/S - restricted shares. Now to me that means they are telling the market they've either fully restricted them or quasi restricted them with some internal agreement not to sell the shares on the open market. They may be able to sell via a private placement to a PE fund but that's private and not on the market. Lastly - these guys are clearly smart people and I fully believe they kept news down in order to buy shares at or below cash value per share KNOWING the immense upside UCPA has. They are in it for the big one like PB, myself, and others. I didn't buy this stock with 116k cash from .003 to .029 (yes I slapped the high .02's as well) in ordewr to flip them at .03. I did this to see the run to .30+ if the LPI stake works as I expect it will. Winding answer and apologies for any wordiness but in effect I like UCPA all common share structure. OTC is notorious for putting horrible clauses in PREF shares. FOr instance POTN has a clause that pref shares convert to common at some crazy % of outstanding float so essentially each pref share is worth 80,000 common shares. I'm happy we don't have sneaky clauses like that heere. Our share of ownership is equal to that of managements.
