In order to take the advantage of the prevailing market conditions, Axiom Corp (OTCMKTS:AXMM) has decided to make some changes in its share capital structure. As per the reports, the company has completed the preferred share exchange and expanded common share retirement.
Insights on The Issue:
The management of the company is pleased to make public this news. It has completed all the formalities to initiate the agreement for cancelling 40 million common shares in the exchange of 2 million Series A preferred shares and 2 million Series B Preferred Shares.
What’s The Mechanism of This Change in The Share Capital Structure:
As per the reports, Series A Preferred Shares of the company are converted into ordinary common shares at an eye-catching ratio of 1:10. It simply means that each Series A Preferred share can be converted into ten common shares of Axiom. Apart from this amazing conversion right, all the shareholders will also get the exclusive right to one vote for each common share. It is not possible to exercise such conversion with an ordinary Series A Preferred share.
Just like the Series A Preferred Shares, all the Series B Preferred Shares are also convertible in the common share at an attractive ratio of 1:10. It means that each Series B Preferred Share is equivalent to ten common shares of the company. Apart from the conversion facility, all the holders of Series B Preferred Shares will be given the right to twenty-five votes for every common share. No Series B Preferred Share can be converted into these common shares.
With the help of this alteration in the share capital of company’s common shares, the management has decreased the total outstanding common shares by 40%, which is an amazing achievement. Along with decreasing overall share liability, the management has also enhanced the strength of company’s share structure and expects to see positive results in the near future.