Please remind yourself of the language from the condo purchase, the preferred shares which I believe are the type III used to acquire the condos amounted to 400,000 preferred shares. They are not redeemable at anytime, in fact the holder cannot put the shares to PBLS until 5 years have elapsed, however they are allowed to convert 15% or 60,000 after year one. So the preferred stocks redemption time period will be one of the matters that will have to be disclosed to us at a later time.
I also did some accounting review and I believe that PBLS has to account for the possiblility of conversion and that is why the outstanding shares equal the authorized shares. At the present time they have to disclose that even though the stocks are not actually issued an trading. So the 400,000 preferred shares or $4,000,000 , if they used a conversion price of $.02 would equal 200 million shares. So imagine if for each acquisition this was the case, then our actual share count that is issued and trading would be siginificantly lower than 1.75billion, I would be willing to bet that it is more in the 800 million share line. The key will be the disclosures that are provided to us that break down the preferred shares, what they were issed for, and when they are able to be put or converted, but by all accounting principals the corporation MUST account for the possibility of conversion. Otherwise if they had 1.75billion shares issued and trading right now, when the time came for the shared to be converted the corporation would have to issued more shares, which there would not be any authorized.
So the key ISSUE will be what the financial disclosures and footnotes disclose to us.
We are going to be fine. Just let their accountant handle the proper disclousre
I dont know why they did not disclose this on June 4th but I guarantee you that they is a reason for this, we may not know or ever find out but RB is in this for the long haul and when its all said and done he will be a very wealthy man and those that believe in him will prospe as well.
I fully believe that the share count was due to the accounting for the possibility of conversion, that may or maynot have to take place, but must be accounted for, at least the possibility, this is normal accounting standard practice. I hope that their would be an accountant, CPA that could further explain the requirement. But remember that this is a PINKIE so management may do what they will, but the explanation must work.
Good luck, im excited. and I bought another million at .034, so you know I am long just as I have always claimed.
