Extreme Motorsports of California (fka EMOC)

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I've not seen anywhere that preferred shares are "restricted shares". Alan's PR does not say anything about the preferred shares being restricted.

IMO- he words things carefully to direct attention in one direction and slips in generalities that are crucial in a manner to keep the focus off the pertinent info.

(Alan talks about the "restricted shares" then casually down plays the 1 billion preferred shares that in reality represent 100 billion shares of common stock- "controlling interest")

From the PR

"To accomplish this funding, Extreme has increased its authorized shares of common stock to 100 billion. The Company anticipates issuing up to 80 billion shares of common stock to complete the funding. The shares will be fully restricted for a period of two years. Until the second anniversary of the offering, there will be no increase in the number of free-trade shares in the market. Management will retain 1 billion shares of preferred stock to maintain voting control of the Company."


Preferred stock has a claim on liquidation proceeds of a stock corporation, equivalent to its par or liquidation value unless otherwise negotiated. This claim is senior to that of common stock, which has only a residual claim.

http://www.investopedia.com/terms/p/preferredstock.asp

http://beginnersinvest.about.com/cs/investinglessons/l/blprefdividends.htm

http://en.wikipedia.org/wiki/Preferred_stock