ctb
Re: JB..he has a convertable debenture(not stock)@ 8% interest per year. He or the company can convert to common shares at any time..at 50% of the bid price on the day of notice.
So, if the bid is $.75 ($.375 to JB) on the conversion notice date the $2,000,000 will give JB 5,333,333 shares..or 28% of the 19 mm shares post split..The lower the atcual bid..the more shares JB will get..
I don't have a link..but I have seen this info several times..
Think about this for a second..when the preferred shares were created..why wasn't there a preference upon liquidation included? Could it be that somebody didn't think it would be needed..same for dividends..
Why was the provision to essentially appoint 2 to the BOD? Seems like that would be helpful in case some other folks were voted onto the board..just a thought
But..the 3 commons for 1 preferred..and no r/s in the event of a reorganization..CB did "pay" for those shares $464k..
What is he going to get for that "investment"? If he converts and sells 10,500,000 @ say $.75 or $7,875,000 that is around 17 times his cost..
However, suppose he converts and holds..he will have enough shares to control the company, with his brother with maybe 28% and his 35%..
Then what? AMEP could go private..the possibilities are many..
