RE:RE:Share price actionThe 40 million aren’t excluded from the vote. The proposal passes if 66% vote yes (including the 40 mill) OR 50% vote yes (excluding the 40 mill). However, the 66% option doesn’t even matter because with executives 40 mill voting yes, they need 55% of the remaining 130 mill to vote yes to get to 66%. Since they would need 55%, it is higher than the other option of 50% of shareholders excluding the 40 mill.
The pref securities may trade upwards but probably won’t; even with a rate of 12.85%, not many people will be attracted to a pref security offered by a company that was trading on the venture at $0.50 with a market cap of 83 mill.
I hope they trade upwards and in a perfect world, you're right by saying they should but there is too much fear and lack of rationale for the prefs to trade up.