I do recall that CytoDyn's use of unrestricted pre

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I do recall that CytoDyn's use of unrestricted preferred shares are listed as a risk factor in the notes to the financial statements.

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They are a risk because currently owned shares could be converted and in the long run be used for an attempted takeover. Additionally any conversion would be dilutive to the number of outstanding common shares.

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However, the ability to use the unrestricted preferred shares without a shareholder vote is also part of the company's poison pill defense.

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The current preferred shares would be used as a poison pill by selling the remaining unsold shares to a person against a takeover and then converting them to common voting shares. Additionally a vote can be held to issue new preferred shares if it's necessary to have additional votes. Anyone attempting a takeover with a large amount of common shares would have those shares locked down from voting for three years.