I think Sillerman is tight on $$ as he allowed SFX to slip into Chapter 11 because he knew that any more cash into it would disappear. All his filing did was convert a certain Preferred issue (which had been issued to him a few years ago, as compensation for some debt etc.) into common shares. He did not put in one penny to get the additional 22mm shares, but it magically allowed the company to erase a big chunk of debt from its balance sheet (as that specific Preferred was on the balance sheet as debt due to its historical link to debt) and thus dress this pig up with some lipstick. IN MY OPINION I would stay away. Sillerman has done nothing but lose big $$ for his investors in the past 5 years.
Look up on the Chapter 11 king (Sillerman's SFX is in the process of screwing its shareholders now and this one will follow shortly IMHO). In case you don't understand the Form 4 filing, what Sillerman did was convert some preferred to common with the idea being that the particular class of Preferred he converted (since there was history to it that related to debt) was considered debt on the balance sheet. By doing the conversion he did not gain any more interest, so has not "bought" any shares, but allows the company to "erase" that date and dress up the balance sheet. IN MY OPINION anyone who invests in anything Sillerman touches now will be burned badly VERY SOON.
Goes ex-div tomorrow, so expect $.11 to come out at the open. Thrilled to be able to buy this close to $5. Synchronoss, RedKnee and/or Neustar will take them out on an "accretive" basis for $8-$10 within the year. JMHO