Rock Ridge Resources, Inc. (RRRI)

[a_charting_god]

lets say that instead of offering preferred shares they offered options to buy shares at say .01( completely hypothetical)

if the services they aquire with those options help increase the share price to lets say (for shits and giggles) .25

those options would be worth far more than preferred shares at .05 and provide ample incentive for the companies getting these options a valid reason to build the value of these shares.

its just my opinion but i would be far more likely to accept options in a situation like this than preferred stock..
but again thats just me..