RE:And there is still this hanging over shareholders heads....The matter of the issuance of unlimited Preference Shares will the least of shareholders' worries...They are merely proforma or boilerplate share structure provisions. They don't mean a thing for existing 01 shareholders.
What sh*t can happen to 01 shareholders are:
(a) O1 shares will be delisted;
(b) 01 will voluntarily decide to file for bankruptcy under the Bankruptcy and Insolvency Act ("BIA"). The Company has total negative shareholders' equity of some <$420,457> for the quarter ended Jan. 31, 2016. Management warns that 01 is no longer a going concern;
(c) O1 is not eligible to file under the Companies Creditors Arrangement Act ("CCAA"). Only companies that owe at least $5 million could file for protection from creditors under "CC Double A". So, the Company goes straight to BIA hell;
(d) The Patent is worthless. Even if 01 wins on re-trial, any dollar judgment will be minimal. As a "Practicing Patent Holder", 01's monetary judgment will likely be based and calculated for a small % of royalty. 01 has minimal revenue for the past 2 years. It is an extremely long shot to win and will be a pyrrhic victory even if 01 wins;
(e) Presumably, AC's family or friends bought and hold the $400,000 debentures. The debts are secured by General Security Agreement with floating charges over all of the Company's assets including the patents. They hold the whip hand and can petition the Company into bankruptcy using BIA laws; and
(f) The Company can roll back the shares 60-to-1, leaving a float of 1 million shares. Get off TSX and list it as a Capital Pool Company (CPC). Sell the CPC dormant company to some high-tech company for a reverse takeover & re-list those shares. AC and his family might get something out of that.
The bottom line is that shareholders have nuthin' to hang on. Their shares will likely go to zero.