Series E pref....
An example...from the 2015 10-K.
"During the quarter ended September 30, 2015, we issued 210,000 shares of preferred series “E” shares for services valued at $26,550."
DECN is using shares as you would cash...they have vendors who will accept stock for services rendered.
In this case,They gave 210,000 pref E shares to a vendor. The only way to monetize those shares is to convert them to Common shares.
So,you must change them into common shares to sell them. In this case,210,000 E shares(each share worth 14 common shares) is turned into 2.9 million(210,000 X 14) Common shares.
So for that $26,000 in services rendered,they basically paid the vendor 2.9 million shares of common stock.
$26,000 / 2.9 million shares......That's $.009/cents per share.
Yes,1 cent/share.
So those $26,000 in services rendered,are now valued at $1.3 million dollars(if the vendor didn't sell his shares)at today's share price.
Even if the vendor did sell them immediately(most vendors would),consider DECN's share price traded at an avg. of $.10/share in September last year.
So He converts them the second he gets them,those $26,000 worth of recorded expenses just become $260,000 cash to the vendor.
That's quite the premium for being willing to take stock instead of cash. Right?
All I know,vendors are benefiting unbelievably from this type of payment program...insanely insanely leveraged.
So you can see how one could enrich someone very easily in this Pink sheet world. I know of no other forum where you can do this kind of financing.
It also may explain why from time to time shares are just popping up in the market at pretty much market sell prices.
Scoop