The new addition of the letter 'Q' on the end of PLNI's ticker.
When a company is going through the bankruptcy process, if the stock is traded on the OTCBB or pink sh*ts, a letter 'Q' is added to the end of the ticker symbol. This serves to give everyone fair notice, even potential new investors, that the stock is/was involved with bankruptcy proceedings.
When a new common stock is issued by the company, it will not have the letter 'Q' on the end of the ticker. Keep in mind, what you want is the new common stock that is issed by the company, not the old stock that existed before the bankruptcy with the letter 'Q' on the end. The reason for this is that in most bankruptcy cases where a company emerges and continues as a public company, the company's plan of reorganization will cancel the existing equity shares (the shares with the letter 'Q' on the end).
This is why the convertible preferred shares exchange is so important. Think of it like this. The addition of the letter 'Q' on the end of the ticker PLNI is telling you that these shares are probably going to be cancelled.
What PLNI hopefully is offering is a temporary "swap" like account for you to move your money into temporarily until they receive a new ticker symbol, and hopefully allow you to convert the preferred shares into this new common stock with a new ticker symbol when they issue it.
We still do not want to act yet as Plasticon has not posted the terms and conditions of the convertible preferred stock exchange yet on their website, presumably because it needs approval by the bankruptcy court first, and we still have plenty of time before the July 3rd deadline.
Also, the reorganization plan must be given to share holders and it will have your rights as an investor.
Also, we may be given a chance to vote on this. I for one vote that the par value be set at $3 instead of $1 if they are going to divide my share count by 1000. However, if they offer a plan where we can convert the preferred shares back into common shares of a new ticker at the rate of 3 common shares in the new ticker for every 1 preferred share, with a starting market value of $1 in the new common stock, I would approve that.
So I think we want to press for better terms in this exchange, either on the front or the back end if the bankruptcy court gives us the option to vote. The bankruptcy court ultimately will have the last say, but it doesn't hurt our position anymore than it's already been hurt to demand a more favorable exchange rate. While we may be pro-PLNI, we also must remember that we have to represent our interests as share holders first. |
