he stated how he was going to pay for Susanville in the PR
What the PR is trying to play up is the idea Hanalei Renewables is willing to sell their assets to LLEG for securities not cash, in the expectation of getting a huge slice of LLEG pie divys later on. What did the PR say about the terms of the special preferred stock? Answer: Nothing.
We have Mr Ed through telephone as reported by a poster not a PR, definitely indicating the stock is convertible. Our hero Mr Ed also indicated they had placed conditions on volume or how the stock could be converted. It doesn't sound like Hanalei Renewables via their stepchild Renergy is really looking at this as some long term equity investment in LLEG. Rather their goal is cash. Exactly what one would expect for a previously rescued bankrupt Renergy, with an ongoing Arizona site. How would cash be generated for a $3M sell by LLEG, without issuing more common shares and dilution? By allowing the conversion of yet to be issued preferred shares, against the 700M authorized shares on the sideline.
There's no conflict between my theory Susanville is (was) to be paid for by conversion against the 700M shares authorized but not in the float, and the PR released. At a PPS of 0.0050 it's a good match.
