Patient Access Solutions Inc (PASO)

[Stock Farmer]

Ultimately the preferred share value is based off the common share price.

Basically just times the common price by the conversion ratio (250) to get the preferred share value at the time.

From Investopedia:

The value of a convertible preferred stock is ultimately based on the performance of the common stock.

If you’re referring to the price PASO affixes to the Convertible Preferred Shares on September 18, 2020, IMO it would have to be set at around 250 times the common share price at the time to incentivize shareholders to convert their commons to preferreds.

They will want to put the commons and preferred shares at the same starting points IMO. If not, I don’t see why shareholders would convert to preferred shares.

Disclaimer:
I am no expert by any means.