Whats next to trample shareholders?Jeewels...some math for you..
My guess is they will issue a new class of preffered share. They may have done it already at a previous AGM. Does anybody know?
So, this is how I think might play out. Company SHAT has 100 common share issued. SHAT creates a new class of share equal to the number of Common shares but at $0 value. They issue them to whoever. So now SHAT has 100 Common shares and 100 SHAT shares. A SHAT share can vote at the AGM but SHAT shares have no dividends. A condition for the holder of SHAT shares is that SHAT shares can be converted to 10 common shares at 10% of the common share value at time... say a buyout of SHAT.
So, a buyout for SHAT gets tendered for $500 for each common share. SHAT shares now get converted to common shares at 10 to 1 and at a siscount of 10% of the value of a common share... or $.50 cents per share. Now the SHAT share holders hold a majority of the common stock at a fraction of the common share price and reap the biggest payout from the $500 buy out.
Signed: VancouverPig...how's that for math Jeewwells?