"Preferreds can be designated as class A and can be made to be superior to commons in a number of ways. They usually do not split."
Preferred shares are ALWAYS superior to common shares in claim to assets. As for "no split"...correct...especially in the penny world...its how insiders avoid the nasty effects ;-)
So if his "equity investors"...buy commons and then convert to prefs...an RS is almost guaranteed, there is no other reason to convert.
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