Radioio Inc (RAIO)

[rasta48]

So this is preferred stock, and can not be sold on the open market. The trustee has already negotiated with the Zanett Opportunity Fund based in Bermuda. We will have no idea of what the transaction price is until it is completed.

So why would someone buy a chunk of preferred? There are a couple of reasons, one is the regular dividend payment. We have no idea what that is, but if they miss a payment this just keeps accruing and the preferred holders are always paid before anything could be distributed to common holders. What I think the most important reason an opportunity fund would buy a chunk of preferred would be first in line during a liquidation. This fund most likely sees more value in liquidating IWDM then actually working to make it grow. In bankruptcy preferred holders are first in line for distribution of assets.