GUYS:
I just called the Apple (IR), they called 141 capital for me and got the answer. According to Alicia Goldberg of the Apple. She said that when the preferred certificate was sent out, there was an exhibit A attached to the certificate saying that the Board has the right to exercise any R/S when Preferred is converting back to the Common. The Exhibit A does not specify the conversion ratio though. I think that explains why 3000 shares Preferred becomes 108,000 shares Common.
I then asked Alicia, if R/S also applies to preferred back to Common, then what is the advantage of conversion to Preferred in the begining. Also, I said that there may be a legality issue because the exhibit A was attached with the certificate and is the after-the-fact event. Before the conversion from Common to Preferred, the company didn't spell out the possibility so that the decision to do conversion or not cannot be justified. She said that she can't comment because she is nit a legal expert.
I think we need to have an attorney to look at this. Also, I had never received any Exhibit A talking about this. Did anyone of you receive the Exhibit A?
thanks!
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