Patient Access Solutions Inc (PASO)

[MNK3240]

Choosing tender offer on Sep 18:
1 prefd. for 250 common, which equals to 0.06c/share ($15/250=0.06), the preferred share price is $15. If in case, the stock price on Sep 18, for example is 0.15c (or anything over 0.06), why would anyone choose to convert to prefd. share? The positive side is you get 6% on preferred share and your 0.06c/share is locked, no risk of losing. Negative is you can’t trade until the deal is closed and you can’t get stock price appreciation afterwards. The only unknown is subsequently how the preferred shares will be converted back to common, meaning the ratio between preferred and common, it may not be same 250 for 1.

Everything will depend on the close of stock price Sep 18.