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Microcap & Penny Stocks : ROTI - Harvest Restaurant Group Inc -- Ignore unavailable to you. Want to Upgrade?

To: chalu2 who wrote (1012)	1/2/1999 2:16:00 PM
From: Edward Mamula	Read Replies (2) \| Respond to of 1702

I did not mean to imply that I thought that such a situation where dividends would be suspended was probable, but I still believe that it is possible. The preferred stock is a type of contractual agreement that may (I believe) be amended with the consent of all parties (Company and shareholders), much like the common shareholders can vote to amend the Company's articles of incorporation. I only meant to imply that factoring in accrued dividends into a valuation of ROTIP could prove erroneous and dangerous. Must all accrued dividends be paid if Harvest decides to call the preferreds? I held ROTIP for four months, (June to October) and I received no dividends. I have since converted all of my ROTIP into commons and have no intention of re-entering ROTIP because of the extremely low float and wide spread. If anyone knows when the ex-dividend dates for the 1st and 2nd quarter were, please post them! REDEMPTION. The Preferred Stock may not be redeemed by the Company until March 11, 1998. Any shares of Preferred Stock outstanding thereafter are redeemable for cash or in Common Stock of the Company in its sole discretion, in whole or in part, at 110% of the bid price per share of the Preferred Stock on The NASDAQ SmallCap Market for the 20 trading days prior to the redemption date. Notice of redemption will be mailed at least 30 days but not more than 60 days before the redemption date to each holder of record of Preferred Stock to be redeemed at the holder's address shown on the stock transfer books of the Company. After the redemption date, unless there shall have been a default in payment of the redemption price, dividends will cease to accrue on the shares of Preferred Stock called for redemption, and all rights of the holders of such Preferred Stock will terminate except the right to receive the redemption price without interest. ---------------------------------------------- How do the dividends in arrears get factored into the redemption? I'm not sure.