Can someone explain this to me. Can they redeem these at anytime?
Note 12 – MEZZANINE EQUITY
Authorized
5,000,000 shares of convertible, redeemable Series C preferred shares authorized, each having a par value of $0.001 per share. Each share of Series C preferred shares is convertible into 10 shares of common stock.
1,000,000 shares of convertible, redeemable Series D preferred shares authorized, each having a par value of $0.001 per share. Each share of Series D preferred shares is convertible into 5 shares of common stock.
5,000,000 shares of convertible, redeemable Series E preferred shares authorized, each having a par value of $0.001 per share. Each share of Series E preferred shares is convertible into 4 shares of common stock.
The Series C, D and E preferred shares are mandatorily redeemable upon a major transaction which includes a change in control. As a result, they are classified as mezzanine equity.
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Mezzanine equity transactions
During the three months ended March 31, 2019, the Company did not have any mezzanine equity transactions.
Note 13 – PREFERRED STOCK
Authorized
3,000,000 shares of Series A preferred shares authorized, each having a par value of $0.001 per share.
10,000 shares of Series B convertible preferred shares authorized, each having a par value of $0.001 per share. Each share of Series B convertible preferred shares is convertible into 1,000,000 shares of common stock.
On March 26, 2019, the Company effected a reverse stock split of its shares of common stock on a four thousand (4,000) old for one (1) new basis. Preferred share amounts remained unchanged.
Preferred Equity Transactions
During the three months ended March 31, 2019, the Company did not have any preferred share equity transactions.
