Elite Pharmaceuticals Inc (ELTP)

[lostatsea]

And with Nasrat owning the preferred shares, he has cleverly and dramatically increased his equity ownership in the company. While the company continues to dilute - which, will dilute Nasrat's common shares and other ordinary shareholders - in reality, ownership is being transferred from those common shares to the preferred at a much greater rate of value. Nasrat loses a percentage of his common shares value via dilution (as we all do), but his preferred grows at a much greater rate than his dilution; e.g. (this is just an example of how it works, I haven't calculated the actual numbers) he will lose 1% of ownership of his common to dilution, but gain 3% total ownership in a preferred conversion - this of course at the expense of ordinary common shareholders.

At least that's the way I understand the filings.