PGI is buying the operating company, not the company represented by the common or preferred shares. They are different. When the takeover is complete, ACTT will have $44 million cash and $150 million owed to the preferred holders. They will then liquidate the company and pay the cash to the preferred stockholders and terminate the common stock.
They spelled that out very clearly as what would happen in the SEC filings. This is neither new nor a surprise.
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