Options Media Group Holdings, Inc. (OPMG)

[lnong]

I never understand why all these financial/legal texts have to be written in such long, winding, wordy and convoluted run-on sentences that most of the time confuses the reader more. Why not make it a law to write them in a manner where EVERYONE can understand clearly, and which would prevent ambiguous interpretations? After reading the 8K, I'm actually more confused now at the wording below:

...the former securityholders of Illume will receive in exchange for their security holdings in a combination of Illume Series I Preferred Stock (which shall be automatically convertible into shares of the Company's Common Stock upon the filing of Articles...increasing the number of authorized Common Stock of the Company); Warrants to Purchase shares of the Company's Common Stock, and Stock Rights to acquire additional shares of the Company's Common Stock

I can see it being interpreted 2 ways, and I'm leaning towards believing in the 1st one.

First Interpretation:
Current security holders of the Illume Series I Preferred Stock will:
1) Receive warrants to purchase OPMG common shares.
2) Receive stock rights to acquire more OPMG common shares.
3) Receive OPMG shares from the AUTOMATIC CONVERSION of their Illume Series I Preferred Stock shares. The increase in A/S of OMPG is a direct result of this conversion.

Second Interpretation:
Current security holders will:
1) Receive warrants to purchase OPMG common shares.
2) Receive stock rights to acquire more OPMG common shares.
3) Receive shares of Illume Series I Preferred Stock. Shortly after the Merger in complete, these Preferred shares will be automatically converted to OMPG shares. The increase in A/S of OMPG is a direct result of this conversion.

These are just my direct "translation" from the 8K, and the 1st one is more logical to me. However, I do not have much knowledge/experience as you ppl here in these company merger and acquisition events, so you guys tell me which of those DO happen in the real world.