FWIW, at present there are only 50 million shares authorized of which 17.5 million or so was outstanding prior to this agreement. An additional 27.5 million plus shares were issued to the shareholders of COHD corporation making 45 million plus issued and outstanding. At present, neither the 27.5 million or the 234,000 class D preferred shares are registered nor can they be traded. Today the float is still around 12 million per the latest 10Q and the 8k filed on Monday Nov. 13th.
Since the shares were issued to mostly management, I highly doubt they will sell anything at this point. The first thing they must do is get approval from shareholders to increase the authorized. That shouldn't be a problem since they own 92% of the shares. Once that passes, they could convert their shares if they wanted but I haven't seen any direct management sell shares. I do believe they will increase the authorized shortly. What I don't understand is why they just didn't do this right now?
The 8K has some interesting information in it such as the right to redeem the Class D preferred shares at any time after Aug 1st 2007. at which time if any shares are redeemed they would be reduced from the outstanding.
When I read stuff like this I wonder why they put this information in here if they have no intentions of doing this.
I believe this stock is terribly undrvalued here and expect to see some significant increase shortly.
JMO
weo
