Posted On: 12/12/2014 5:15:13 PM
Post# of 7775
Question-
The series A shares: 100 authorized 1 outstanding. Liquidation value 5mil.
They can be converted into common stock where they are equal to 66% of outstanding commons and receive 66% voting rights.
How exactly does that work?
66% of 1.6bil outstanding now is 1bil. If they issued them to the holder the OS would then be 2.6bil and the holder wouldn't have the 66%.
In order for the series A holder to have 66% that would mean the current OS of 1.6bil would have to be a third of the new OS which would put OS at 4.8bil.
I'm thinking not in terms of them being issued rather in terms of that A holder retiring them.
GRCU
The series A shares: 100 authorized 1 outstanding. Liquidation value 5mil.
They can be converted into common stock where they are equal to 66% of outstanding commons and receive 66% voting rights.
How exactly does that work?
66% of 1.6bil outstanding now is 1bil. If they issued them to the holder the OS would then be 2.6bil and the holder wouldn't have the 66%.
In order for the series A holder to have 66% that would mean the current OS of 1.6bil would have to be a third of the new OS which would put OS at 4.8bil.
I'm thinking not in terms of them being issued rather in terms of that A holder retiring them.
GRCU
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