Sam, there is a sinking fund required which will hold 3+ years’ worth of interest payments. Those funds can only be used for the interest payments. That is also about how long it would be until GNBT can repurchase the preferred shares. So that would provide some level of protection against default on the interest payments. And the owners sit at the front of the line for payouts if the Company goes under... for whatever that might be worth.

Also, anyone can buy the preferred shares, including current shareholders. And, as Doc pointed out, there may be a discount on the price for current shareholders.

It will be interesting to see how many shares are sold. But even if they only sell 30-40% of them, it may make a material difference in cleaning up some messes, finalizing some deals, and getting a couple of items out of the hopper and into real business. I also like the fact that it doesn’t invite sharks into our pond like the old S-1. For that reason, I may consider buying a few... if the discounted price is $30, our rate would be 14.3%. Maybe worth a bit of bond-like risk?