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This post probably says it a little better than me....
By: ddinv
10 Jan 2004, 09:33 AM EST
Msg. 5409 of 5409
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Longs - It's our chance to cash out, IMO ...
Just perused latest 10QSB, and learned of Series F
preferred used for CD back in 4/03. Here's the exerpt:
"In April 2003, management authorized the Company to raise up $550,000 through a private placement by issuing 10% two-year convertible preferred instruments. The preferred, designated as Series F, and providing for one million shares in total, will be convertible into shares of Water Chef's common stock at such time as the stockholders of the corporation approve an increase in the authorized capital stock of the corporation. All dividends are payable in shares of the Company's common stock valued at the then current market price per share, or upon conversion, whichever is earlier. The conversion rate for shares and accrued dividends payable is 40 shares of common for each 1 share of preferred stock and dividends payable, or $0.025 for each share of common stock. The Series F convertible preferred stockholders have voting rights equal to the common stockholders. The Series F convertible preferred stock has no stated rights in the assets of the Company upon liquidation."
Once we get our proxies, and approve the authorized increase, the CD holders can convert. As the CEO and company officers control 50% of voting rights, looks like authorized increase is imminent. IMO, run up in price
is the customary increase by CD holders to get a nice high
price to open their short position.
Looking to sell to close my WTER position, so hope this pump
is a good one.
Later, Len
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