Phoenix Associates Land Syndicate (fka PBLSQ)

[MrPastorious]

you are correct that if the holder converts, they believe that it is in their best interest to do so.
I still maintain that these preferreds issued will pay a dividend. Why else would they be accepted by the seller of the property as opposed to accepting common shares? Think about that... If a preferred does not pay a dividend, what is the advantage of having them? why go through the registration process of issueing a new class of preferreds??? As you should know, This is the definition of a PERC " Preferred stock that converts automatically into equity at a stated date. A limit is placed on the value of the shares the investor receives." from http://www.specialinvestor.com/terms/1513.html This is clearly NOT a PERC, since there is no limit on the value upon conversion, just a floor. AND it does not automatically convert....... The deed of sale will not tell you the structure of the preferred shares, nor should it. Since you do not see it in the deed, you should not assume they will not pay a dividend. they have outlined two options that the holder can exercise in the deed. It is not in the scope of the option(s) to spell out the terms of the preferreds.
I do not believe you had a good point in post 31382. You make the statement "Surely some of that liquidity comes initially from Preferred Shares or the sale of common shares, but that's what healthy companies do."
Healthy companies register their common shares with the SEC Before selling them.