Maximizing the use of preferred shares for this deal will minimize the use of common shares which will minimize any dilution. This is important because the Outstanding Shares (OS) is the fundamental denominator that's used to assess the fundamental valuation of a stock as it is used to derive the Earnings Per Share (EPS) of a stock.
If the incoming merger has Net Income, like I believe it does, then the valuation of APSI would be substantially greater due to how low the OS is since its further reduction of shares taking the OS down to 17,204,180 shares:
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