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Re: dlake post# 530460

Sunday, 12/19/2010 9:48:33 AM

Sunday, December 19, 2010 9:48:33 AM

Post# of 2344335
RNRG - Since apparently you don't understand preferred shares and their purpose in start-up financing, read up on their anti-dilutive effects:

http://www.bukisa.com/articles/360479_an-introduction-to-preferred-shares

"Occasionally companies use preferred shares as a means to prevent hostile takeovers, creating preferred shares with a poison pill or forced exchange exercised when there is a change of control."

"Some corporations contain provisions in writing authorizing the issuance of preferred shares whose terms and conditions can be determined by the board of directors when issued. These preference shares of "blank check" are often used as a defense of a hostile takeover. These actions can be assigned a high liquidation value that must be paid in case of a change of control or can have enormous voting"

Hmm...high liquidation value, such as the $10 per preferred share that Revonergy assigned according to their filings? They want to avoid a hostile takeover, I wonder why? Most worthless penny stock companies are begging for investors to buy up their worthless shares and take the company off their hands, NOT Revonergy.

Preferred shares, $10 a share, redeemable after 5 years! No discounts or toxic financing here. Finally, a small-cap company who understands how to raise money the right way!
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