Replies to post #2197 on Signature Devices Inc. (SDVI)

[gamchess]

Not sure but a good possibility that it may be the perferred stock is being diluted into the o/s...

It's Niagara Falls of stock baby... the flood gates are open!

Don't be surprised when it all goes away... far far away...






As of July 10, 2008, 277,552 shares of Series A preferred stock were outstanding and held of record by 3 stockholders

The Series A preferred stock votes with the common stock, and each share of preferred stock is entitled to 1,000 votes per share on any matters that the stockholders are required to vote upon. Each share of Series A preferred stock also is convertible into >>>>>>>>>>>>>>1,000 shares of common<<<<<<<<<< stock at the option of the holder. Mr. Hurley, the CEO and director of the Company, owns '243,658 shares of Series A
preferred stock'. This would allow Mr. Hurley, together with his ownership of 19,469,000 shares of common stock, to control approximately 263,127,000 votes.

As of July 10 th , 2008, 20,063 shares of Series B preferred stock were outstanding and held by 9 stockholders. Each share of Series B preferred stock is convertible into 1,000 shares of common stock at the option of the holder and is entitled to one vote per share.

As of July 10 th , 2008, 5,000,000 shares of common, and 5,537,500 shares of preferred has been issued by Graffiti Entertainment, Inc. the wholly owned subsidiary of Signature Devices, Inc. These shares are convertible at equivalent of $1.00 per share to $1.00 worth of Signature Devices, Inc. shares at the time of conversion. Of the 5,000,000 common shares, Signature Devices, Inc, owns 100%. Of the 5,537,500 preferred shares, there are 3 stockholders, Signature Devices, Inc owning 5,000,000 shares, Twin Equities owning 507,500 shares and Eric Knopp owning 30,000 shares.

Our board of directors has the authority, without further action by our stockholders, to designate and issue all remaining shares of preferred stock in one or more series and to fix the designation, powers, preferences and rights of each series and the qualifications, limitations or restrictions thereof. These rights may include a preferential return in the event of our liquidation, the right to receive dividends if declared by the board of directors, special dividend rates, conversion rights, redemption rights, superior voting rights to the common stock, the right to protection from dilutive issuances of securities or the right to approve corporate actions. Any or all of these rights may be superior to the rights of the common stock. As a result, preferred stock could be issued with terms that could delay or prevent a change in control or make removal of our management more difficult. Additionally, our issuance of preferred stock may decrease the market price of our common stock in any market that may develop for such securities.