Well I know that reverse splits effect only common shares, preferred are not included in any reverse split.
Perhaps there is going to be a reverse split? That would be the only reason that I can think of.
Couldn't tell you for sure but it seems odd that a man who can issue himself shares at will would convert common to preferred when he could have just issued himself preferred to begin with. It has to be for a reason and the only reason I can come up with is to protect his holdings from a reverse split.
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