I have a question for anybody who might know, or have an educated guess: Under the terms of the provisions whereby the preferreds were issued, they were protected from dilution by means of a formula by which their number would be increased by the same proportion as any increases in the common--in this case, about 25%--in order for them to retain about 87 percent of the control and equity of the company. My question is whether the dividend-yielding preferreds--I think it was the B shares, will also be raised, and whether that proportional increase will also raise COPI's debt service by about 25%.
For anybody who really wonders what the recent drop in PPS is all about, you may want to consider the possibility that the company insiders and affiliated parties are filling their pockets at the expense of the lowly common stockholders who may have paid too much for their stock in all the excitement. The non-dilutability of those preferreds has come around already to bite the common stockholders.
So, do COPI's dividend payments go up about 25% when and if the 30 million new common shares are issued? If so, that's a significant new ongoing expense.
A good bottom's hard to beat.
e
