Just want to reiterate the languae in the contract if for Preferred shares of PBLS, INC. Not PBLS LLC, The LLC is owned by PBLS INC, and was just set up to hold title of the condo project. It makes it a more simple task for the lender to organize the loan and enforce any agreements, without going through all of the corporate layers of PBLS.
Once again this is a 1 to 1 conversion and the seller does not have the option to purchase the shares, they were given the shares in lieu of $4 million dollars.
OH well, I provided the exact language of the contract to clarify the options and that is how it should be analyzed. The seller will obviously only convert after year 1 if he needs cash and the share price is significantly higher, otherwise he is waiting the five years to collect his $4 million dollars.
Good luck to all
