Totally agree. The key here is that there is no reason for them to convert to common if the common stock price is low.
But re-read the Second Option on page 4 of instrument 1591412...there is something there that does not make sense regarding the valuation of PBLS Preferred stock falling below a value of .03 that they can not exercise the option. I fully believe that should read "common" not preferred and is a typo. That's where I am coming from with the .03 price floor on the conversion from preferred to common. And as for a 1 to 1 conversion, that is also not in the document. It states that they can convert up to $400K of PBLS LLC preferred stock into PBLS common a year, after Nov. 2006, but only if the stock is trading above .03. It's a valuation thing. Today, $400K of Preferred is 40K shares. You could sell that and after commissions would get approx. $28M shares of common, for a conversion of 1 for 700. You get to choose whether they are speaking of Preferred or common there. I choose common.
That's how I read the document and I don't know how to post a screen shot nor do I have time to re-type it.
Ren
PS Still would like an answer to the PM I sent to you.
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