Rivulet Media Inc (fka RIVU)

[BONNIEGAIL]

Today Koos Posted an announcement http://biz.yahoo.com/e/130502/bmsn8-k.html of a new preferred stock class with 1,000,000 shares issued that have 100,000 votes per share vs. the common stock's 1 vote per share means that Koos will control the stock even though he has already diluted it to 1.7 billion shares of common stock issued, which is another 400,000,000 more issued than previously announced.

Just this new issue of preferred stock alone will have 1,000,000 times 100,000 votes which equals 100 billion votes which dwarfs the 2 billion votes of common stock. He has the right to do this move 19 more times as the number of shares of preferred stock the charter allows is a total of 20,000,000 shares of preferred stock to be issued. I thought this would actually drive the price down. I was wrong, the stock rose 50% today.

In the post, Koos states, "The issuance of shares of Series AAA Preferred Stock, with disproportionately high voting rights generally, will adversely affect the voting power of holders of common stock and other currently outstanding series of preferred stock of the Company.

To the extent that the Series AAA Preferred Stock may have anti-takeover effects, the Company believes that the ability of the Company to issue shares with such voting power will encourage persons seeking to acquire the Company to negotiate directly with the Board of Directors enabling the Board of Directors to consider the proposed transaction in a manner that best serves the stockholders' interests."

I suppose the buyers that sent the price up today, suppose Koos's statement above Preferred Stock may have anti-takeover effects means that somehow a takeover is imminent in this company without a marketable product? What do the rest of you think?