swvc's Toxic Convertible Preferreds are Fully Dilutive Now...
There is no reason for them to ever 'convert' .
They are already Fully Damaging Now, and always were,
from the second they were printed + signed.
However, there are 3 reasons to not convert them.
1] They can be sold 'as is' , for full current value,
without converting.
2] If the Preferreds are converted, their dividends [12+%?]
end. And, those Preferred dividends must be fully paid,
to date, including all arrears, on All Preferreds, BEFORE any
dividends/whatevers can be paid to any common 'share'holders.
3] When swvc goes BK, or gets 'sold' , possibly in some
tricky paper swap, [which seems to be swvc's main 'business'],
the Preferreds must be 100% paid off, including principal,
and any unpaid interest, BEFORE any common swvc 'share'holder
gets 1 penny.
And, don't expect them to ever be 'bought back' .
swvc will always have 'better uses' for the cash, like,
covering 'operations' losses, and paying salaries + raises,
and bonuses + 'expenses' . And, 'acquiring' more toxic
'companies' from friends + relatives, and, anything else
that the 1 voter, who can never have less than 80+% of all
votes, decides to vote for.
Bottom-Lines :
1] The Convertible Preferreds own All of swvc's assets,
and way more than enough votes to keep owning all, forever.
2] The swvc common 'share'holders own Zero, and always will.
But, enough novices think that swvc common shares have some
value, so there is a 'price' , that bounces, based on the
lack of understanding of the most important Facts, about
share structure. [Which are missing from the other half of
the not-yet fair+balanced iBox.]
3] Only flippers + shorters will ever make money from swvc
common 'shares'. [And the CEO, as he prints + sells new
'shares' , or loans+warrants+options that convert to shares.]
Because, the swvc share structure guarantees that all swvc
common 'shares' will eventually be worth Zero. And, for pinks,
and 'companies' that are 'structured' like pinks [like swvc],
"eventually" = less than 3 years, and, usually less than 2.
4] swvc common 'share'holders essentially 'own' a shell, that
will never contain any assets. Which, actually, makes it
worth less than the typical pinky shell, which sometimes
contains assets, for short time periods.
5] No Real Investor or Fund will ever buy swvc common shares,
and swvc common will never 'uplist' to any real exchange.
But, if swvc accidentally 'does good' , Real Investors may
buy some Preferreds, and they might even trade on a real
exchange, if outsiders ever control the Preferred votes.
extra, Sincerely ; But oooo, of course, as usual.
P.S. ; swvc is not the only pseudo-pinky that has recently
learned to play the 5+x-Super-Toxic-Totally-Undilutable
Convertible Preferred 'share-structure' game. It seems to be
a new 'trend', especially for entities that actually are
'in business' , even if they are losing money, and may even
turn profitable [like copi + wnbd, and a few others, but
not znxt/paim, ever]. But, that does not change the Fact,
that the 'share-structure' insures that all common 'shares'
are eventually/soon worth Zero. And, shorters appreciate
that pseudo-pink company common 'shares' death insurance policy.
AI
