how does that convert at a 1 to 1 basis? it converts to common at the market price of PBLS stock, unless it is below .03 per share, if the holders of the preferreds wish to convert.That is CLEARLY not a 1 to 1 conversion. Let me spell it out for you. If the stock price is .05, they can convert 1 share of preferreds for 200 shares of common. if the price of pbls is .10, 1 preferred share converts to 100 common shares. Only if the stock is at $10 will it convert at a 1 to 1 ratio, The holders of the preferreds can put it back to the company, as preferred shares, at the $10 price. In the meantime, those preferreds DO pay a 6% dividend. This is pretty much the standard structure of a convertable preferred. I like the fact that it ian't convertable at a discount to market.
Your DD is appreciated,however your interpretaion of the facts are both faulty and laughable. I do not consider preferreds "evil". They are a perfectly legitimate form of capitalization. Of course, you will need to realize how they will be accounted for in the total share structure.
