Replies to post #150026 on Strategic Asset Leasing Inc (fka LEAS)

[trader59]

That’s easy. The point of the RS is to wipe out the legacy shareholders/bagholders of the prior business. Preferred shares were given to the owners/insiders of ANEW in the RM that are not affected by the RS. Those shares, over 400k of them, convert 100-1 into commons after the RS, meaning those preferreds will make 40M common shares. With a 2500-1 RS, the OS will then be a little over 400k shares, meaning the common shareholders will own about 1% of the company equity.