Prom Resources Inc (PRMO)

[DC168]

Preferred share is on June 2010 financial, Q1 & Q2 reports. There were typos, it says 3,500,000 preferred shares. Actually, should be read 350,000 preferred shares.

Principal / directors purchased 350,000 at $10.00 each in 2010. So, PRMO raised $3,500,000 through sale of preferred shares.

The reports also say preferred share has priority in case of buy out and dividend. They receive money prior to distribute to common share holders. They are also convertible if they choose to exercise this option. i.e. convert to common shares. Like I said, the lower pps, the more it can be converted. IMO.