RE:RE:RE:Share price actionYou are correct. If they "flip" the company right after the conversion then the pref securities would be bought out at $10 (assuming the buyer offeres face value for the prefs) which would be equal to a current value of $0.70 for current share holders.
If they sell for $0.90, they make a quick $0.20/ share while the shareholders still get the $0.70/ share.
However, i would guess that it is illegal for them to flip the company so quickly for such a profit. Im not sure what the law is regarding that situation but seems illegal to me.