What I'd like to know are the answers to the following:
Once we receive our Preferred Shares (Par $1),
1) What will they be convertable to? The new common shares? At what conversion rate, or what will be the par value of the new common shares?
2) How long of a wait period will there be before the conversion will be permitted?
It is unclear if this is a deal worth buying into at this point, (I'm thinking no) but for those of us who are already holding shares, it appears to be the thing to do.
Chances are very good that the current common shares will become worthless and new common shares will be issued at some point. Those of us holding Preferred Shares at that time will be in line to receive our new common shares, at no additional investment cost.
I might add that Mr. Turek didn't have to make this offer to the shareholders. He could very easily and legally cancel the current common shares and issue new common shares leaving all of us with nothing. I believe this shows his true colors and all of those who prattle nonstop about what a con/thief/ripoff this guy is can go pound sand...
Kaz
