Replies to post #8112 on 141 Capital Inc (fka ONCP)

[ThSeeker]

Are “Series B Preferred Stock" count in the OS? I know restricted shares are. Are the “Series B Preferred Stock" the same in terms of OS?

[jbisme]

Gbathat, I agree with your analysis. On the surface, the conversion locks in a 1,250% profit but that profit can't be realized any sooner than 3 months from November 7, 2008.

The risk being that the share price is greater than $0.00125 3 months from November 7, 2008 and you could have made more than your guaranteed profit of 1,250% if you would not have converted.

I have requested a physical stock certificate back from a broker once and I believe it took a couple of weeks to get the physical cert delivered and cost me $50 to get it. I believe the conversion requires the physical cert to be delivered to the transfer agent.

The conversion deal requires no cash outlay on part of the company; whereas, a share buyback would require cash outlay by the company. Thus, I believe that is why XXIS opted for this conversion deal.

[Jack Kanter]

Gbathat,

"If the pps is lower than .00125 after three months, you could increase the number of common shares you own"

I think that's it in a nutshell. If the sp is lower than .00125 when you convert your preferred back to common, you end up with more shares than you had originally. If the sp is higher, you end up with less. If you go by the company's examples of .50, or even .05, you'd be kicking yourself till the day you die for taking them up on their offer.