Frequency Holdings Inc (FRQN)

[mrrickjordan]

Man thank you for actually reading the docs!

A couple things need to be cleared up... because some assumptions are getting mixed together.

YES ... the preferred shares were issued to reflect ownership of the real operating business that came into the public company. That was disclosed.

The people who owned and built ReachOut didn’t just hand it over for free. That part as you said makes sense.

What is getting misunderstood is how those preferred shares actually convert.

They do not convert all at once. And nobody can just flip a switch and take control of the common stock or print billions of shares. There’s a hard 9.99% ownership limit at any given time for any preferred holder.

That limit cannot be waived. No holder can convert past that level in one shot, no matter what percentage gets talked about in theory.

Another big difference people miss... these preferred shares are NOT like the notes.

They don’t have a floating discount tied to the stock price.
They don’t chase the lowest bid.
They convert based on ownership math against what’s outstanding... not on liquidity pressure.

On the reverse split topic... yes one possible path could involve cleaning up the share count before any preferred conversion. But that’s not automatic, and it’s not being done to “wipe out” anyone.

If a RS happens it’s about fixing the structure so the business can actually move forward... not about creating an exit for one group or a noteholder.

I’m not asking anyone to take my word for anything. This stuff is in the filings.

My focus is on fixing the foundation so the stock actually has something real behind it now. No way am I playing games with short term moves.