Patient Access Solutions Inc (PASO)

[MoneyForNuthin]

Personally - I believe this deal with the tender offer was targeted to insiders, affiliates, friends, family of PASO insiders. With a whole lot of shares still in "book entry" form and/or not even deposited to DTC (float shares), it's clear that much of the O/S is held by those I just mentioned. For MANY reasons it makes very good sense, 1) for those folks to roll their shares up into the preferred stock, and 2) for the company to make this offer. Good for THOSE shareholders, good for the company, good for the rest of us shareholders. It reduces the O/S and therefore market capitalization (market cap), which provides headroom for a higher pps as a result (that's mainly how it's good for "us" typical retail shareholders when insiders et al roll their Common shares to Preferreds... market cap calculation is based on "Common" O/S only). Similarly, that market cap / pps effect is good for the company because the higher pps can get the stock to the big boards more quickly, organically (without having to do a reverse split for a higher stock price in the range of $5 to $10 in order to uplist).

I am thinking about setting aside a million or so shares for this, but most likely I will just leave it alone. I've got time to mull it over, though, til Oct 15. I have a pretty good chunk of C shares already from the Sept 18 dividend.

I'll go out on a limb and say that it seems pretty clear to me that not many joe retail traders will convert to a single C share in this tender offer. As I mentioned, I truly believe this was for insiders, affiliates, friends and family of PASO insiders.