Okay, Wally, I'll humor...not that you would concede anything because you are paid by management to make your impotent attempts to confute me in what I say...more money wasted by management IMO.
Okay, it made sense at the time, to Keith, because Wally Gifford Mabie and Jack Arnold had left the company for dead.
The idea behind the preferreds was to show that management would achieve certain goals and if they were not met then shareholders would get something for hanging in with the company..i.e. paid for their good faith.
It also showed that Keith intended to deliver on increasing shareholder value and if he failed at least shareholders would get more equity and increase their ownership stake. If he succeeded, then shareholders have price appreciation for their time and investment.
The preferreds were issued to reinstate credibility at a time when credibility was severely lacking. When Keith and the Board decided to issue the preferreds shareholders like it, and it added to the positive momentum of the company's turnaround being on track and progressing toward success.
That's why at the time it made sense in proving that Keith was serious about rehabilitating CVIA as a real company and investment.
YOU ARE FACTUALLY INCORRECT BECAUSE issuing the preferreds did not create dilution.
