Not sure about the details. I asked him about the preferred shares & why they didn't appear as info on the updated site. He didn't stipulate any details but from reading his response, it led me to believe that they are convertible.
Eric,
They haven't been issued yet which is why they don't appear on the web site as of yet. When they are issued we will update the web site.
Generally speaking the newly issued preferred shares would be subject to the standard six month restriction on resale associated with Rule 144 and we have also put in place a "dribble out" clause, so if they do decide to sell at some point they are limited to the amount they can sell in a given period of time. Provisions like that are generally incorporated into transactions with a view of safeguarding existing shareholders by minimizing the impact to the share price if there is a sale.
It is also worth noting that it is expected that these people are going to be our business partners, so we certainly hope it is their intention to hold onto their shares for a while. I understand your concern, but it is not our expectation at all that the shares are going to be adding any selling pressure to the market any time soon.
Regards,
Mike