I have not spoken directly with Doug about the question you just asked, and frankly, I didn't pay much attention to that PR back when it was released simply because I have no concerns about the share structure or management.
Doug is as good and honest as they get, and has graciously allowed the common shareholders to share his wealth by not doing a reverse split and taking a huge percentage of the company to himself by diluting them. Keep in mind that this was a private company wholly owned by Doug, and now we have a portion of it for free. We own shares, but the company received nothing in return. All he is asking for is the added growth and access to capital made possible by being a public company vs private, and he will benefit only through the shares that he has purchased for himself.
He did get approval for the proposed share structure last summer, but since then he obviously has reconsidered and decided that he has no need to keep any common shares and will move all of his to preferred. To do that, he resubmitted to the SOS and increased the quantity of authorized preferred shares. I personally don't care if he reduces the AS of the common or not. He may need them in the future for a merger/acquisition, but he will not be using them to sell on the open market and raise capital, diluting us.
As far as believing that the current events are going to happen as stated, I'm 100% confident. He is a man of his word, and he has stated that the signed paper work has been submitted and he's just waiting for the TA to process it.
Keep in mind also that although Doug is a very sharp individual, he is new to the world of public companies and is having to rely on the advice of others. He may at times make minor errors, but he will learn from them. I think most of the things that don't go as stated are because he received less than perfect advice from those giving it. As a result, he is finding other advisers. I know he wants what is best for all of us, and not just himself personally. I think we'll be very pleased with the new board members.
I hope I answered your questions.
AI
