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Microcap & Penny Stocks : Madera International - Symbol WOOD
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To: David T. Groves who wrote (1655)4/15/1999 5:44:00 PM
From: Telemarker  Read Replies (2) of 1979
 
Hello David. I too feel that the prospects for WOOD look exceptional. I like the business, the web site (and it's reasonable prices), the concept of helping the tribes, and most of all the balance sheet.

After trading in and out of the stock in December, I'm back for another look. I have one question about a matter that troubles me concerning the capital structure of WOOD. As you appear to have done a great amount of DD, I'm directing the question to you, but would appreciate everyone else's input also.

Note J of the latest 10Q filing discussed $2,400,000 of Convertible Series D Preferred stock presently held by Mr. Fernandez-Moris. The note describes the "floating" conversion feature, which appears to enable Mr. Fernandez-Moris to convert this Preferred stock into a number of common shares so as to give him 51% of the outstanding common shares at the time of conversion.

Could you please give me your views as to the effects upon the public common shareholders if Mr. Fernandez-Moris were to exercise this conversion option? What would happen to the book value of presently outstanding shares upon such a conversion? If the company were to be sold, how would conversion effect the proceeds received by present common shareholders?

Obviously, the effects of conversion don't look pretty to me as a prospective common stockholder (I'm not just trying to lay out "loaded" questions). I would like some help in evaluating this matter, as it presently is the only matter which prevents me form taking a long term position in WOOD at this time.

Thanks in advance for you help.

Best Regards.
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