I think that you have it backwards.
The common shares are most certainly not being shunned.
From the news release itself, it states:
"All shares issued to the officers, directors and management continue to remain restricted to date. To help alleviate market concerns, these parties have opted to exchange their restrictive common stock with restricted preferred stock. Further, all shares owned by the officers, directors and management are held in paper certificate form and are not on deposit with any broker or dealer.
Now then, why would this help to alleviate market concerns?
Oh, I have the answer to that!
Unlike a common stock, a preferred stock normally does not participate in the appreciation or drop of the common stock. Preferreds can be thought of as the lowest-possible grade bonds.
Now note well: Does it say anywhere that the preferred stock held by management are convertible preferred? I don't think so...meaning that management is looking at their shares of preferred as a long-term investment.
So...to answer the question again. Management and officers and other investors are looking at their shares of preferred stock as true investments....not as a way to someday flood the market with shares. Also note that these preferred shares are RESTRICTED preferred shares.
P.S. AMAZING....the shorts just don't stop with trying to raise questions or doubts, do they?
