Patient Access Solutions Inc (PASO)

[reader3]

You are misinterpreting. They are doing the RM with CLX Health directly with preferred shares. That's in the LOI. However, the preferred shares already ARE convertible, so legally they have to make sure that there are sufficient common shares to convert before they do the deal. It doesn't mean that they intend to convert. Rather, it probably means that they are dotting their I's and crossing their Ts prior to completing the deal, and the lawyers wouldn't let them finish until those shares were available. The authorized raise was required to complete the deal. It doesn't mean there will a RS.

Their other moves signal that they are thinking strategically and long term, including setting up the ability for insiders to convert to preferred shareholders along with everyone else (but also being much more likely to, since they actually know their plans).