I do truly wish I could agree with you about the number of shares but To me it looks like it clearly States that 310 M preferred B shares will be created. I would love to be wrong. I would like more clarification but they stated at the beginning of that paragraph.
“With this approval from NVSOS, these new authorizations will allow us to pursue more strategic acquisitions, as well as onboard new officers and key partners,”
That sounds like some or all of these shares will be created and held in order to be given to NEW (more) "key partners". Some of these might go to existing officers and partners, BUT they state these are coming from existing key partners and officers common shares.
Heres the thing!!! The 2 highest officers have a 100 million shares and Jethes has a 185 million common shares. Even if they converted all of theirs that would be 25 million shares short. I doubt seriously The 2 main officers will be asked to give up any of their measley shares. And I doubt Jethes will give up a significant portion of his common shares...... So who does that leave?
Key Partners!!!
If correct, That means Hatati or Bounce will be giving up some or a fair portion of their common shares. If most of these are being created to help with new partners et cetera That means they won't be going(at least not all) to "Existing players".
This may be a way of getting Hatadi more out of the picture And possibly some deal from the beginning To reduce his total ownership.
Even if Hatati and Bounce get some of the preferred shares, not only with the moratorium, But the fact that S FIO has 1st refusal on getting them back and and what they say is other restrictions...... That means Hatati is agreed to keep some skin in the game for a longer period of time. ( Hopefully with less total is total ownership)
One of these options is better than the other but I see both of them as has actually better than the option of toxic lending or massive common share dilusion.
As I said before, Other classes of preferred shares are usually held to maintain control and hedge against buy or takeovers and are rarely converted. Usually, only in the case of a complete company buy out. If they are convertible to 3B, That would require raising the AS And given that they just reduced it, It doesn't make sense that there planning on the opposite extreme anytime soon.
Anybody else want to ask him for clarification, Please be my guest... Always good to have more than one Investor responding.
