Harold's take will be clearer, but for the most part there's two ways to look at it. Mpix raises capital for the upcoming projects with the issuance of more mpix shares....dilution is never fair to shareholders but its a fact of life in the penny world. The other way is to issue preferred stock to insiders as a perk or as a way to raise additional funds...in this case lets hope that's what they are doing....remove some common off the float and hope we never see those again. One angle could be they are doing both...ie. rewarding themselves for what is coming ( the preferred ) and have 400-600 million to issue down the road if needed for capital. It takes million and millions of dollars to build a multi million dollar company, so lets see what MPIX can do!.