Replies to post #27967 on Sack Lunch Productions Inc (SAKL)

[benosufan]

You mentioned you saw Surber's response to your question. I have quoted it below. You look at what he stated on Facebook then look at the quarterly report and see preferred C shares getting converted to commons. IMO someone converted more series C shares to commons given the increase in OS by 6.7 million. You are right...these commons getting released are capping the gains for common shareholders. At least there has been significant volume to accumulate the shares. At some point supply may overcome demand due to these repeated conversions. Of course it is within the preferred shareholder's right to convert those shares. Think of it this way...the 169,600 preferred C shares that were converted in May were worth almost $850,000 at .13 That's a boat load of money. As of end of March there were 881,470 preferred C outstanding. That leaves 686,437 outstanding preferred C shares after the conversions listed in the quarterly. That's over 3.4 million dollars worth of stock in liabilities. Let's hope Surber is right and the largest shareholders may never convert. Unfortunately he has no control over that piece of the puzzle. They are just limited in how much they convert at a time.

from Facebook

Most Series C Preferred can be converted into free trading shares. The higher the price the less dilution. Additionally, there are limitations on how many can be converted at once. The Series C holders are nearly all long term holders. The largest holders have significant investment in the company. Many may never convert from what I have observed so far.

From the quarterly

On May 19, 2016 the Board of Directors approved the conversion of 169,600 shares of Series C Preferred shares into 6,523,074 shares of Common Stock. The shares were converted at $0.13 based on the conversion provisions of the Convertible Series C Preferred Stock designation.