kp - Info from the top of this board....................
"In preparation for the Closing, Frank Pringle, the controlling stockholder of Mobilestream, has agreed to convert the balance of his shares of Mobilestream Common Stock to shares of Mobilestream's Preferred Stock. To accomodate that, Mobilestream is (a) amending its Certificate of Incorporation to increase the
total number of shares authorized to 866,000,000 shares, of which 506,000,000 are undesignated Preferred Stock, and (b) filing a Certificate of Designations, designating 503,374,112 shares of such Preferred Stock as the "2006 Series of Convertible Preferred Stock". Upon effectiveness of the Certificate of Amendment and the Certificate of Designations, Mr. Pringle's 503,374,112 shares of Mobilestream Common Stock will be converted to the 503,374,112 shares of the 2006 Series. At Closing, the holders of the Mobilestream shares will receive 1 share of the Company's stock for each 7.143
shares of Mobilestream stock and, accordingly, the holders of the Common Stock will receive 11,145,225 shares of the Company's Common Stock and the holders of the Preferred Stock will receive 70,472,376 shares of the Company's Preferred
Stock. Prior to Closing, the Company will designate sufficient shares of its undesignated Preferred Stock to permit such issuance."
I thought these huge quantities of shares were the result of the forward split and would be converted back in due course. I was also assuming that large quantities of them found their way to traders etc etc
I'm no expert, just an ordinary bloke, and that's why I'm confused by this. The blurb appears to say that Pringle has over 503,000,000 Mobilestream common stock himself. Well does he or doesn't he? I know there's a difference between authorised and issued, but here's someone with over 503,000,000 according to the company's own statement.
I think this just goes to show how dangerous this whole market is for people without the knowledge. I can't understand the legalese even when it's staring me in the face and it's there for my benefit.
There must be hundreds like me who are foxed by the whole series of manoeuvres these companies have performed.
