You are converting the 14,421,370 shares at 4:1. The MDIN shares held by Frontier were converted at 3.35:1 (25,000,000 / 7,465,000) so wouldn't the MDIN shares held by NPEC be converted at the same ratio.
14,421,370 shares converted at 3.35:1 equals 4,306,221 pfd shares and when you add the 1,500,000 pfd shares for the 20% interest in SLP, you get a total of 5,806,221 pfd shares. Now this number is different from the 4,707,950 pfd shares mentioned in the NPEC release.
Working backwards, if you take the 4,707,950 pfd shares and deduct the 1,500,000 pfd shares you get 3,207,950 pfd shares and if you convert them at 1:3.35 you get 10,743,302 shares (or at 1:4 you get 12,831,800 shares). Now this number is different from the 14,421,370 shares NPEC started with. Why the difference?
Either NPEC now owns 4,707,950 pfd shares AND 3,678,068 shares (or 1,589,570 shares using the 4:1 ratio) or NPEC owns ONLY the 4,707,950 pfd shares and that means they didn't start with the 14,421,370 shares. Which scenario is it?
Its too bad that these guys don't have to follow any rules and file this information somewhere.
Wouldn't the creation of a new class of shares require shareholders' approval? |
