RE:RE:RE:creation of preferred shares proposed I know I had been skeptical about the preferred shares route the company was taking, so I reached out to management and had a very productive conversation with them today.
After the conversation, most of my worries have been removed. My inexperience in this type share structure got my back up but this doesn't take away any of the control that common shareholders have. They had also explained that our goals were both aligned in that maximizing common shareholder value is the end game. Their current holdings and options are all common stock so they want the same as us and the market cap and thus common shares to increase.
They also stated that this was only to allow preferred shares to be issued and that there was no immediate plan to issue them. They are looking at these shares more as capital financing rather than using the debt/bond route to finance posssible acquistions or growth opportunities. The end game with these type of shares would also be, like debt, to likely repurchase them rather than have them outstanding forever.
I have decide I will be voting for the preferred shares as I do believe they would only issue them if they are required to fund an important growth opportunity that would in turn also increase the market cap long term.
GLTA and I'm looking forward to the AGM