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Thread: Who says Malone will convert right away?

  1. #1
    Hopeful is offline
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    Who says Malone will convert right away?

    Does Malone have a time frame in which he has to convert his preferred to common???

    Does anyone think Malone will hold off converting to help the SP?

    Could Malone benefit by not converting at these price levels and waiting to convert until the SP goes up?

    Does Malone still have the same power that he would obtain from 40% common with his 12.5 mil preferred?

    Wouldn't it be in the best interest of the company for Malone to hold off converting?

    Does everyone think the R/S is imminent? Is their a chance that they may hold off on the R/S?

    Could Mel stick to his word and only use the R/S if delisting is an issue, which is a long ways away!?

    Will they have to hold a shareholder vote to enact the R/S if it is not used for the purpose to avoid delisting?

    Oh yeah! A BIG THANK YOU, TO EVERYONE ON THIS BOARD WHO HAS BEEN AN OPTIMIST WITH THIS STOCK!!! I am sure I would have sold long ago if I was not apart of this board!!! THANK YOU AGAIN TO EVERYONE, especially Tripp ahahaha that guy played a big role in keeping me in!!!

    I feel like I could bench press a helicopter right now!!!


    OH yeah one last thing! jdhfslakhasodiufhiuashifhiasufuasdhfsaduhfiadsuh greatest day EVER no more stress!!! Except for the RS of course lol...
    Last edited by Hopeful; 03-07-2009 at 12:28 AM.

  2. #2
    tucknroll is offline
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    Quote Originally Posted by Hopeful View Post
    Does Malone have a time frame in which he has to convert his preferred to common???

    Does anyone think Malone will hold off converting to help the SP?

    Could Malone benefit by not converting at these price levels and waiting to convert until the SP goes up?

    Does Malone still have the same power that he would obtain from 40% common with his 12.5 mil preferred?

    Wouldn't it be in the best interest of the company for Malone to hold off converting?

    Does everyone think the R/S is imminent? Is their a chance that they may hold off on the R/S?

    Could Mel stick to his word and only use the R/S if delisting is an issue, which is a long ways away!?

    Will they have to hold a shareholder vote to enact the R/S if it is not used for the purpose to avoid delisting?


    Oh yeah! A BIG THANK YOU, TO EVERYONE ON THIS BOARD WHO HAS BEEN AN OPTIMIST WITH THIS STOCK!!! I am sure I would have sold long ago if I was not apart of this board!!! THANK YOU AGAIN TO EVERYONE, especially Tripp ahahaha that guy played a big role in keeping me in!!!



    OH yeah one last thing! jdhfslakhasodiufhiuashifhiasufuasdhfsaduhfiadsuh greatest day EVER no more stress!!! Except for the RS of course lol...
    having 40% or more he has or will have board seats...opinions from what i hear r/s is not right away, delisting is still aways off....enjoy the weekend as we all are for once

  3. #3
    trippingthespeculatingpos is offline
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    Preferred stock, also called preferred shares or preference shares, is typically a higher ranking stock than voting shares, and its terms are negotiated between the corporation and the investor.
    en.wikipedia.org/wiki/Preferred_shares

    Maybe mel will let us know, i dont think they will be converted any time soon.

  4. #4
    asm610 is offline
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    posted this in another thread.

    Preferred Stock
    Preferred stock doesn't offer the same potential for profit as common stock, but it's a more stable investment vehicle because it guarantees a regular dividend that isn't directly tied to the market like the price of common stock. This type of stock guarantees dividends, which common stock does not. The price of preferred stock is tied to interest rate levels, and tends to go down if interest rates go up and to increase if interest rates fall.

    The other advantage of preferred stock is that preferred stockholders get priority when it comes to the payment of dividends. In the event of a company's liquidation, preferred stockholders get paid before those who own common stock. In addition, if a company goes bankrupt, preferred stockholders enjoy priority distribution of the company's assets, while holders of common stock don't receive corporate assets unless all preferred stockholders have been compensated (bond investors take priority over both common and preferred stockholders).
    Like common stock, preferred stock represents ownership in a company. However, owners of preferred stock do not get voting rights in the business.


    Don't expect him to convert any time soon.

  5. #5
    asm610 is offline
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    btw



    Some info from yesterdays 8k w regard to the conversion of shares;


    Section 6. Maturity . The Series B-1 Preferred Stock shall be perpetual unless converted in accordance with this Certificate of Designations.
    Section 7. Conversion . Each share of Series B-1 Preferred Stock shall be convertible, at the option of the Holder thereof, at any time, and from time to time, into the number of duly authorized, validly issued, fully paid and nonassessable shares of Common Stock equal to the Conversion Rate in effect at the time of conversion (subject to aggregation and the payment of cash in lieu of fractional shares as provided in Section 13 of this Certificate of Designations). In order to convert shares of Series B-1 Preferred Stock into shares of Common Stock, the Holder must surrender the certificates




    --------------------------------------------------------------------------------




    representing such shares of Series B-1 Preferred Stock, accompanied by transfer instruments reasonably satisfactory to the Company, at the principal office of the Company (or such other place mutually acceptable to the Holder and the Company), together with written notice that such Holder elects to convert all or such number of shares represented by such certificates as specified therein. With respect to a conversion pursuant to this Section 7, the date of receipt of such certificates, together with such notice, by the Company or its authorized agent will be the date of conversion (the “ Conversion Date ”). In the event that a Holder Transfers shares of Series B-1 Preferred Stock, other than in connection with a Transfer permitted by and in accordance with the terms of Section 4.2(b)(1) or (2) of the Investment Agreement, such shares of Series B-1 Preferred Stock so Transferred shall be automatically converted into shares of Common Stock at the Conversion Rate then in effect immediately prior to such Transfer by a Holder (in which case the date of such Transfer shall be deemed to be the Conversion Date).
    Section 8. Conversion Procedures . (a) On the Conversion Date with respect to any share of Series B-1 Preferred Stock, certificates representing shares of Common Stock shall be promptly issued and delivered to the Holder thereof or such Holder’s designee upon presentation and surrender of the certificate evidencing the Series B-1 Preferred Stock to the Company and, if required, the furnishing of appropriate endorsements and transfer documents and the payment of all transfer and similar taxes.
    (b) From and after the Conversion Date, the shares of Series B-1 Preferred Stock to be converted on such Conversion Date will cease to be entitled to any dividends that may thereafter be declared on the Series B-1 Preferred Stock; said shares of Series B-1 Preferred Stock will no longer be deemed to be outstanding for any purpose; and all rights (except the right to receive from the Company the Common Stock upon conversion thereof and any dividends previously declared on the Series B-1 Preferred Stock but not paid) of the Holder of such shares of Series B-1 Preferred Stock to be converted shall cease and terminate with respect to such shares. Prior to the Conversion Date, except as otherwise provided herein, Holders shall have no rights as owners of the Common Stock (or other relevant capital stock or equity interest into which the Series B-1 Preferred Stock may then be convertible in accordance herewith) (including voting powers, and rights to receive any dividends or other distributions on the Common Stock or other securities issuable upon conversion) by virtue of holding shares of Series B-1 Preferred Stock.
    (c) Shares of Series B-1 Preferred Stock duly converted in accordance with this Certificate of Designations, or otherwise reacquired by the Company, will resume the status of authorized and unissued shares of Preferred Stock, undesignated as to series, and will be available for future issuance, but shall not be reissued as shares of Series B-1 Preferred Stock. The Company may from time to time take such appropriate action as may be necessary to reduce the authorized number of shares of Series B-1

  6. #6
    JohnnyIrishXM is offline
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    A simple answer is if he converts now,he;s in the same boat as us(common share holders)what do you think he will do?
    NOTHING FOR NOW!!!!IMHO

  7. #7
    homer985 is offline
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    Not a chance, no way. The Sirius A-1 Preferred give him BOD seats. Plus the shares rank higher than the common.

    No conversion any time soon -- and reverse split before the end of 2009.

  8. #8
    JohnnyIrishXM is offline
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    Homer a ?if you can respond..
    I beleive a R/S is only pertinent to issued shares,correct?
    if so then i see a reverse split of 10-1 after sp reaches .50-.60 sp,which i beleive this stock can get to by the fall,for a total of 400m shares give or take.that leaves a market cap of 2bill.with a $5-$6 sp the funds can buy it and then malone will convert B-2 shares for 40% of company,about 160m shares.but i'm not sure about the 300m lent to hedgers,how it affects them?

  9. #9
    Wirestripper is offline
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    Quote Originally Posted by trippingthespeculatingpos View Post
    Preferred stock, also called preferred shares or preference shares, is typically a higher ranking stock than voting shares, and its terms are negotiated between the corporation and the investor.
    en.wikipedia.org/wiki/Preferred_shares

    Maybe mel will let us know, i dont think they will be converted any time soon.

    It does not really matter much as far as the SP and the streets determination of the potential valuation. The street will assume conversion at some point and price that in. This is what they are trying to figure out now and why the stock failed to pop more than it did.

    Over the next three to five days, we will witness what the street has deternined to be the new SP. (in my humble opinion)

  10. #10
    Newman is offline
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    By converting the preferred to common, Malone would get voting rights on his shares. Nothing more.

    By not converting, Malone gets:
    1) Priority distribution in case of BK.
    2) Priority distribution of dividends (if there ever will be any)
    3) The agreement states he will get 40% of the common outstanding at the time of conversion. If Sirius XM dilutes any further before he converts, he will get 40% of that as well.
    4) He already has voting rights: It is called 2 Board of Director's seats. He doesn't need the common.

  11. Ad Fairy Senior Member
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