China Growth Stocks

[RealDutch]

I think you got it mixed up somehow. They already owned the preferred in 2010.

"On June 26, 2010, 7,000,000 shares of common stock were cancelled and the Compay issued 7,000,000 shares of Series B convertible preferred stock of $1 per share."

And the number of preferred owned by Tan Poay Teik and Chen Bor Hann now, is nowhere near the amount of common shares they used to own.

So these two events can't possibly be linked IMO.

You are probably referring to the 6M shares of common that were retired in October 2011 (and then reissued to settle debt).
Those had to come from cancelling the common shares of Tan Poay Teik and Chen Bor Hann and another 600k from Solomon. IMO.