(Question-to-the-board) I THINK I GOT MY ANSWER
Disclaimer:
I could be wrong!
But if I am, would somebody please tell me how and why I'm wrong, already?
Not some glib, cutting remark about how dumb I am or what a pumper I am, but in a friendly and intelligent manner providing the information I'm missing?
Otherwise I am becoming more and more convinced it's as cut and dry as below, and am just trying to be helpful.
Source outside IHub told me,
"IF I was MTRT management I would issue myself a control block. That would be 51% of 2,000,000,000 which equals 1,020,000,000. Assuming all 5,000,000 preferred/restricted are issued as the control block would require that 1 preferred equals 204 common shares. That leaves 980,000,000 shares for capital expansion or whatever. THAT'S JUST ONE IDEA. At this point really doesn't matter until they reveal the plan for expansion. Done talkin."
May be true after all.
Seems our eventual O/S depends, in large measure, on the 5,000,000 Preferred Shares' CONVERSION RATE.
(Which should be determined on Sept. 20.)
Not that a low conversion rate would guarantees a large S/S . . . (companies often authorize way more than they expect to issue, so they don't have to go through the entire process all over again, of increasing the A/S, since it's not easy.)
But IF a very high conversion rate is voted in, it WOULD tell us how many commons ARE EVEN AVAILABLE for issuance, meaning we COULD BE CONFIDENT to assume Medium isn't planning to issue very many shares any time soon.
FOR EXAMPLE:
(using the same math above
and assuming all 5,000,000 preferred shares are convertible and intended to be a control block)
If 180:1 is voted in, that means no control block; so can only guess higher. (5,000,000 Preferred shares times the 180 common shares each of them requires to be authorized, equals 900M of the 2B A/S, or less than 51%.)
If 204:1 is voted in, 980,000,000 shares would be available for potential issuance.
If 250: 1 is voted in, 1,250,000,000 token shares out of the 2B A/S would have to not be commons, so they could potentially convert to commons. Leaving 750,000,000 commons available for issuance. (5,000,000 x 250 = 1,250,000,000.)
If 300:1 is voted in (5M x 300 puts us at 1.5B shares that must be left alone and not issued out of the 2B), that would leave 500,000,000 shares available for potential release into the O/S.
If 350:1 is voted in (5M x 350 = 1,750,000,000 commons that can't be issued out of the A/S), that would leave 250,000,000 shares even available to potentially be issued.
If 380:1 is voted in (5M x 380 = 1,900,000,000 commons that can't be issued out of the A/S), that would leave 100,000,000 shares maximum, that we could expect to be in O/S.
If 395:1 is voted in (5M x 395 = 1,975,000,000 commons that can't be issued out of the A/S), that would leave a maximum of 25,000,000 shares we might expect in the O/S.
Which will it be?
I think we'll find out Sept. 20, or at least when we learn the results of the vote.
"Exhibit A" tells us THEY ARE voting on adding 5,000,000 Preferred Shares on Sept. 20.
So that much we know for certain.
Let's assume Medium succeeds in voting in their own proposal of 2B A/S and 5,000,000 Preferred Shares, a pretty safe assumption.
Since Preferred Shares are usually used for maintaining a control block and are convertible, I suspect they'll have to attach a conversion rate to them that same day.
Less than 204:1 would not yield a control block; and over 4:00:1 is not possible.
So it seems reasonable the rate will come in somewhere between 204:1 and 395:1.
Which means the potential O/S could top out somewhere between 980M and 25M shares, assuming they even do issue it all.
But since they likely won't issue it all for a significant amount of time (if ever), the numbers we'll ACTUALLY SEE IN THE O/S should be A LOT LESS than that.
Just my thoughts and opinions.
And I'm dying to know if someone can show me where I'm wrong.
IMHO
