Replies to post #11496 on Saleen Automotive, Inc. (fka SLNN)

[FredVestor]

There's only one reason why they switched to preferred shares:SLNN needed more common shares to issue to note holders, this reason is plainly stated in the disclosure:

On June 16, 2015, in order to make available additional shares of Common Stock to facilitate the conversion of outstanding debt, the Company issued to Steve Saleen, the Company’s Chief Executive Officer and President, 82,133.875 shares of Super Voting Preferred Stock in exchange for 82,133,875 shares of Common Stock held by Mr. Saleen.

Steve took preferred and the company got 82 million more common shares to issue to note holders.