I think you are mistaken... 800k preffered shares are being canceled not converted. This removes the potentialy 1.6 billion common shares if converted.
You may get somethng confused here. 800k preferred's were cancelled (see method 3 as previously posted), so those shares would never be converted into commons. That's a start.
IF 800k were converted, how do you think 1.6bn shares would ever make it into the float? The pps would be at no bid. And a reverse split would only make the situation worse, because shareholders had to bear the burden twice. They'd first have to buyout the new shares ( a pure profit for preferred holders) and then would have their ownership reduced by the factor of 100 (while preferred's are unaffected).
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