PrepaYd Inc. (fka PPDC)

[Bobwins]

This is apparently some kind of anti takeover move. Berman has enough votes to do these things without a shareholder vote. He is exchanging 200 million of his shares for 200million preferred that have super voting rights of 3X normal shares. As a small offset, he is saying he won't sell any of these shares for 3 yrs.

Maybe he is thinking of raising bigger amounts of money and wants to ensure that he maintains voting control even if someone else comes in and buys 200 million shares. This is one of the dangers of a closely held company. Berman hold more than just this 200 million. There are 575million shares out and he holds 400, I think.





Designation of and Issuance Preferred Stock

The Board has approved, and the stockholders owning a majority of the shares entitled to vote on matters submitted to the stockholders have consented in writing to designate 200,000,000 shares of Series A Preferred Stock. The Series A Preferred stock is entitled to three votes per share, but may not be sold or otherwise transferred for a period of three years, or in the event of a sale or other dispensation of the Company.

The Board has also approved, and the stockholders owning a majority of the shares entitled to vote on matters submitted to the stockholders have consented in writing to issue 200,000,000 shares of Series A Preferred Stock to the Company’s CEO in exchange for 200,000,000 shares of common stock.