There are several types of preferred stock including convertible pfd. And depending on the dividend on the preferred and it is considered secured then for a penny stock it is one of the elements in death spiral financing. Existing shareholders are moved down the asset structure as a more senior ownership security is layered in.
Technically maybe not dilutive but last resort type of financing for a penny stock.
keahou: I know you were providing commentary from the “market”, so I don’t want to shoot the messenger, but nothing in your note is true about this particular stock and situation. It is NOT dilutive, it is NOT in any way shape or form a “financing”, the convertible preferred here does NOT pay a dividend, the will NOT any more senior ownership “layered in”.
We can all argue about whether this helps or hurts the overall stock price in the long run. I’m not even sure which side I come down on in that debate. But regarding everyone’s positions of ownership in PVCT, there is ZERO change. ZERO.