This company has been hoseing its shsreholders for years. They are notorius for reverse splits and sweetheart deals with select bondholders. How long before it is $2 per share? Not long. And setting up for the next set of suckers.These guys are experts at sucking cash from foolish investors. Fooled once, but never twice. They live on your greed.
A holder of >5% would purchase the discounted preferred shares if they needed to dilute their holdings in order to meet the SEC criteria for LVLT notto exceed the amount of 5% holders. That's why the shares are offered at a discount of $9.
You have to be an owner of >4.9% of "common stock" to purchase a Right to obtain the discounted $9 share. If the company obtains more than the authorized amount of 5% holders they'll lose their NOL's and this will have an impact on taxes (if/when they show a profit)By having the ability/right to purchase discounted preferred shares, an owner of >5% can theoretically dilute his common share holdings down to 4.8% and not affect LVLT NOL's
I wouldn't say you're lying. I didn't believe it at first either. It says so in the statement they released a few weeks ago. Someone should call investor relations and ask them why the hell they're selling preferred shares for $9? It's a good question. Maybe it's an incentive used to entice funds that deal on the NYSE to purchase >5% holdings?