Fire and Perm,
I mentioned something about this on the RB forum but most people were so upset that the pps did not move after that PR about the 53% preferred shares and no one responded.
One important thing about preferred shares is that the company/CEO/holders can retire those shares on the secondary market. In other words, if Frank decides that he wants to retire a certain percentage of his preferred stock, he does not have to do it on the regular market, in pre-set blocks, etc.
I believe this was the first step of a strategy move to retire more shares without giving the MMs an opportunity to manipulate the pps while the retirement is executed.
This move will have a longer impact on our eventual move to a higher stock exchange. I do expect a similar move with the 6bb restricted shares held as a collateral. If those shares are changed to preferred then they can be reired/bought back or whatever the company decides to do on the secondary market without allowing the MMs to manipulate QBID's pps while these transactions are going on.
This is a long-term strategy to reduce the OS to levels that would be acceptable by most major stock exchanges.
Fire, your example of a 1:10 ratio maybe a little too high but I can certainly see Frank doing a 1:2 ratio and retire half of his shares in the future. In this way us shareholders will not have to face a R/S and still reduce the OS effectively.
IMO