The guaranteed MINIMUM value of the preferred stock issued is $5,832,944 and is probably conditional...more than likely an incentive to hold on to the stock for a pre-arranged amount of time...hence the 4:1 conversion ratio at 85% market value...I believe they said that the shares were convertable at any time but if they retain the preferred they get maximum value..unless and until the PPS of common goes above and beyond $4..IE: if they choose to convert immediately they take a hit...and holding those preferred's would also protect them in the case of an R/S..IF that ever comes along..
I'm not 100% sure as it is a bit confusing unless one is a stock GURU...but thats how I understand it...I'm sure if I'm worng someone will correct me...
BTW...I never claimed to be smarter than you or anyone else.
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