You can't get $2 cash for the shares. That is just their value used to calculate the conversion. You take their value (which is currently $2/share) then you divide it by 100 X the par value of the common stock ($.00001/share)
$2/$.001 = 2000 shares each
if they reduce it down to $.002 like they promise then you'll get
$.002/$.001 = 2 shares each
The only option you have is to convert the stock. Unless of course ANDI goes into liquidation/bankruptcy then the preferred shareholders will have higher rights to the assets to recoup their investment over the common shareholders.
But yes, of course the Series B preferred shareholders are going to want to convert their shares and sell because the shares hold a lot of value with ANDI trading where it is versus where it was in the $.000s a few months ago.
I'm still very suspicious about this so called clause that allows them to change the value of the Series B preferred shares and thus the conversion rate of the stock. That's a very unusual clause to see in a preferred share designation. I do know that the Series D and Series E preferred shares do not have this clause (because you can find those designations on the Wyoming SOS and view them for free). In fact, the Series D and Series E preferred shares have clauses written in protecting the rights of the holders against any changes to the value of their shares. I'd be surprise if the Series B designation didn't also include a clause protecting the rights of the shareholders against any changes to the value of their shares. So we'll see how this works out...
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