Replies to post #48492 on ZA Group Inc (ZAAG)

[wallstreet1231]

True, alot of companies have preferred shares. However, the key with the ZAAG preferred shares is the conversion. Specifically, the conversion rate is stated at 250,000 commons for one preferred E share. A mere conversion of 1,000 preferred E shares would add 250 MILLION common shares to the currently report (OTC) outstanding shares of 260m - doubling the outstanding shares - per the bylaws outlined below. It would increase the reported float (OTC) from 829k shares to 250,829,000. And this is only a conversion of a mere 1k shares. Read the filing- below. And for these reasons I disagree that it is a common structure for preferred shares - far from it.

https://backend.otcmarkets.com/otcapi/company/financial-report/94933/content

My opinions.

[slingwing1]

A lot of companies have preferred shares.

Lot of OTC Pinks are nothing but a scam and this one falls in that category. It isn't a new thing.