Heathrow Nat. Food and Bev Inc. (fka HRNF)

[andy8033]

conversion illustration below. it seems like u can't loose, that you will get $1 in value no matter what. am i missing something?

Illustrations of conversion rights:
(a) Assume you hold 1,000 shares of Series B Preferred Stock. Assume further that the closing price of the Common Stock is $.50 per
share. Because you have the right to purchase these shares at a 20% discount, your cost per share on conversion is $.40. The number
of shares of Common Stock which you can receive upon conversion will be 2,500 shares ($1,000 divided by $.40 per share).
(b) Assume you hold the same 1,000 shares of the Series B Preferred Stock. Assume further that the closing price of the Common Stock is
$0.05 per share. After your 20% discount, the number of shares of Common Stock which you can receive upon conversion will be
25,000 ($1,000 divided by $0.04 per shares).