simply put, You quoted the 8k wrong "4 series C converts to 1 commons @ 85% of market price." Not 1 series C converts But 4 Series C converts to 85% of 1 commons at market price.
So, further down when your quote "The number of shares of Common Stock to which a holder of Series C Convertible Preferred Stock shall be entitled upon a Conversion shall equal the product obtained by dividing the number of shares of Series C Convertible Preferred Stock being converted by the Conversion Rate. The Conversion Rate shall equal twenty-one and one quarter percent (21.25%) of the average of the Closing Prices on five (5) Trading Days immediately preceding the Conversion Date. For this purpose, "Closing Price" shall mean the last sale price reported on the OTC Bulletin Board (or the closing high bid price, if the Common Stock ceases to be quoted on the OTC Bulletin Board). For this purpose, "Trading Day" shall mean any day during which the New York Stock Exchange shall" etc.. this means simply put again:
21.25% is the conversion rate of 1 series C Convertible Preferred Stock.
4 series C Convertible Preferred Stock is the 4 x 21.25% or 85% = 1 share common.
4 Series C Convertible Preferred Stock = 85% of 1 common.
The average Prices on five (5) Trading Days immediately preceding the Conversion Date is the manner in which to determine the price of stock.
for example: 5 days of trading at .10 would net an average price of .10 * 85% (4 Series C preferred stock certs would then be = 1 common @ a purchase price of .085)
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