Replies to post #3904 on Rightsmile Inc (RIGH)

[WWB]

Don't forget that the preferred shares count towards the controlling interest and they can be worth more than one vote each...I don't know what the structure of the preferreds are regarding their voting weight but I don't seriously that there is any concern related to control.

[Circuit_Racer]

ait mate, fink this fru. (the east london accent always makes me laugh)


theres 727 mill float, restricted doesnt show up in that
still 773 mill of possible diluting room.

company officsers now own 500 million in pref shares.

they converted @ 1 to 1 right now.


if they want to, tomorrow, they could convert 100 million pref shares back into common @ an exchange rate of 7 for 1.

it would make the o/s max'd out an them holding more then half of the shares as 770 mill is greater then 727 mill.

so just right there they would still own 400 million pref shares, and have controlling interest of the common shares.

now lets say once that 1.5 bill is max'd an they have controling interest, in the small chance they do not have full power lets say they have 48%, they will approach one of the larger share holders, an ask them to vote with them under some sort of compensation down the road that they do not have to disclose to you. (lets say they give him 50 million pref shares)

so if @ anytime (i hope not) they do a r/s an turn around convert pref into common the individual who voted with them would convert his 50 mill pref into what ever convertible rate the board has approved an that individual would make out like a bandit along with the officers.

there is many ways the officers can manipulate the share structure @ anytime.