Cyclone Power Technologies, Inc. (fka CYPW)

[arnold]

dotell..The directores have control:
The defensive strategy is the series B stock. The series B stock controls the votes, and is *owned only by Harry and Frankie .

I do not think it is a defensive strategy, because the owners of the Series A shares are not principles of the company, they have nothing to do with this company. They basically sold Cyclone their shell company and Cyclone paid them with Series A shares . IMHO

The filing states:
The Series A holders are the original equity holders of the LLLP.

*NOTE 9 – PREFERRED STOCK
Preferred stock consists of 500,000 Series A Convertible Preferred (“Series A”) and 1,000 Series B Preferred (“Series B”) shares. Series A shares are currently convertible into a number of common shares that, when combined with the 33 million common shares that the Series A holders held as of July 2, 2007, equal sixty percent (60%) of the then total issued and outstanding common shares. The Series A holders are the original equity holders of the LLLP. The conversion of the Series A shares will have the effect of diluting all other common stock shareholders. As of March 31, 2009, the Series A shares were convertible into approximately 46 million shares of common stock. The Series B shares are majority voting shares and are held by senior management. Ownership of the Series B shares assures the holders thereof a 51% voting control over the common stock of the Company. The Series B shares are convertible on a one-for-one basis with the common stock in the instance the Company is merged or sold.


dotell..Does this post answer your question?

"Thanks for your reply but you've not answered my question. Is this a defensive strategy? or not? Or, put yourself in the place of the directors - why do you think this condition exists?"




* found in another filing

http://cyclonepower.com/PDF/Disclosure_Statement_Final_5-08.pdf