DE, please see excerpt from your posting that I pasted below:
>>intends to pay such accrued and unpaid dividends with a portion of the net proceeds of this offering upon the Preferred Stock Conversion.<<
From the Statement of Income (3/98 earnings report), the preferred stock dividend was deducted from the earnings. Instead, couldn't the dividend have been taken from the cash on hand,$21,401,000? I assume the cash on hand was from the 2M+ share offering. This would have fulfilled prospectus requirement. See prospectus language above. We only realized $6,000 in interest income, per earnings report, and
dividend was only $260,000. Wouldn't the deduction of $260,000 from $21,401,000 have had much less impact on 3/98 earnings than deducting $260,000 from $455,000, the net income amount? Repeating myself, that seems to be the intent stated in prospectus. This is just my take on the issue.
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