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Replies to post #117155 on Drone Services USA Inc. (DSUS)
03/23/14 1:13 PM
03/23/14 2:57 PM
03/23/14 4:53 PM
03/23/14 5:02 PM
03/23/14 5:16 PM
OR it's a last minute hail mary charge to raise funds before an impending inevitble bankruptcy and delisting scenario
... when a company files bankruptcy and is liquidated completely, PREFERRED SHARES are first to receive proceeds from asset liquidation. So even IF THEY GO OUT OF BUSINESS.... everyone who owned shares on March 14th, 2014 will be first to be repaid for their investments.
How Are Assets Divided in Bankruptcy?
1. Secured Creditors - often a bank, is paid first.
2. Unsecured Creditors - such as banks, suppliers, and bondholders, have the next claim.
3. Stockholders - owners of the company, have the last claim on assets and may not receive anything if the Secured and Unsecured Creditors' claims are not fully repaid.
Upon bankruptcy, a firm will be required to sell all of its assets and pay off all debts. The usual order of debt repayment, in terms of the lender, will be the government, financial institutions, other creditors (i.e. suppliers and utility companies), bondholders, preferred shareholders and, finally, common shareholders. The common shareholders are last because they have a residual claim on the assets in the firm and are a tier below the preferred stock classification. Common shareholders often receive nothing at all, as there is usually very little left over once a firm has paid its debts.
03/23/14 11:37 PM
Series C Preferred Stock is a preferred stock that will be restricted from redemption for six (6) months from the date of issue and has a par value of $.20 (twenty cents). Series C stock will be issued in certificate form and mailed to all shareholders of record beginning the following week after recording, the week of March 17th, 2014, arriving to shareholders by mail. Beginning September 17th, 2014, certificates will be eligible for redemption for face value in cash or $.20 worth of PVEC common stock. In the event the price per share is higher than face value of $.20 (twenty cents), the Preferred C Series Stock may be redeemed for 1 (one) share of common stock at the current price per share.
My broker was forwarded the PR about gift shares as well as Jason's explanation and said it looks like "you really lucked out on this one, very nice" he also stated "bring the certs in when you receive them, and we will get you the common stock or the cash... Whichever you want" they WILL NOT however deposit penny stock preferred Cs into your account. But conversion into commons or cash is all very simple and very cheap.
03/26/14 9:02 AM
Again, the company will be sending these Redeemable Certificates. They will not be sent by the Transfer Agent or deposited by your broker.
AI
