They value the company at $0.0022 a share.
$280,000 was paid with 127,273 Series A shares.
Series A shares are convertible into Common Shares at a ratio of 1:1000.
So by issuing 322,727 Series A shares, this brings the total amount of common shares to (322,727x1000)+352,839,995=675,566,995 which is 175,566,995 over the stated A/S of 500,000,000.
Which still isn't bad for a penny stock.
Plus i'm sure there are conditions for the conversion.
On September 21, 2009, Pacific Gold Corp. (the “Company”) filed a Certificate of Designation, Preferences and Rights of Series A Preferred Stock of Pacific Gold Corp. (the “Certificate of Designation”) with the Secretary of State of the State of Nevada, which authorizes the Company to issue up to 322,727 shares of Series A Preferred Stock. The Series A Preferred Stock has the same rights with respect to liquidation as those of the Company’s common stock and will vote with the common stock on an as converted basis. Subject to the terms of the Certificate of Designation, the Series A Preferred Stock is convertible (at a 1:1,000 ratio) into 322,727,000 shares of common stock, subject to adjustment for stock splits and similar events. A copy of the Certificate of Designation is attached hereto as Exhibit 3.1 and is incorporated herein by reference.
