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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: E_K_S who wrote (78363)	10/27/2025 10:59:38 AM
From: Elroy	Read Replies (1) \| Respond to of 78423

I panicked and sold my SOHOB! Ha ha, lost 2 cents per share. This sentence in the series B prospectus concerns me "Each holder of Series B Preferred Stock is entitled to receive a maximum of 8.29187 shares of our common stock per share of Series B Preferred Stock, which may result in the holder receiving value that is less thanthe liquidation preference of the Series B Preferred Stock." Can the buyer of SOHO at some point force conversion? In other words, if it refinances the preferreds, does it have to pay holders $25, or can it force conversion into SOHO stock, and then give you the $2.25 acquisition price in cash? Or can it force conversion of the preferreds into SOHO stock, and you're left with a non-public security? Hmmmmm

To: E_K_S who wrote (78363)	11/1/2025 8:16:41 AM
From: Spekulatius	1 Recommendation Recommended By E_K_S Respond to of 78423

re sOHO preferred. If there is no change of control clause that forces redemption of the preferred, then private equity will, likely keep the preferred as is. Depending on the debt structure , the preferred could be worth left because PE likes toput a mountain of leverage on assets. There are some stranded preferred that trade at distressed levels post takeover because they never paid a dividend again . I recall some Brookfield deal that left preferred like this.