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Replies to post #1957 on Notis Global Inc. (fka NGBL)
02/13/13 10:43 PM
"Oh my....what happened to the MDBX Convertible Preferred Stock?"
First, preferred stock is not addressed in balance sheets. It is addressed in company information statements that we voluntarily post on the OTC Markets website. That is where you picked up on the fact that the shares even exist. Second, an updated information statement will be filed along with the financials we posted on our website, by week's end as stated in our press release on that subject. That information statement will have the exact information you claim we are keeping from the public.
The preferred shares you reference are kept in reserve by public companies to counteract any future attempts in the next 5-10 years for hostile outsiders to gain more than a 51% ownership stake in the public company, thereby taking over control. They are there as a fail safe.
In fact, when looking over the newly filed statement of information, you may find that the preferred was reduced to 3 million instead of 6 million. One may then figure, if they are smart, that the company noticed that the sheer amount of preferred might give investors concerns. One may then figure that the company, through a board resolution, cancelled out 3 million shares that were then deposited back to treasury 2 months ago. Companies that choose to be in the spotlight like Medbox always look ahead and try to anticipate paranoid speculation and work to counteract it ahead of time.
Cheers,
Vincent
AI
