In order to set off the ongoing volatility, Axiom Corp (OTCMKTS:AXMM) has decided to execute common share exchange and retirement program. As per the reports, it has canceled close to 40 million common shares of the company in exchange of 2 million Series A Preferred Shares and 2 million Series B Preferred Shares.
Reports claim that all the Series A Preferred Shares of the company are convertible into common shares at a ratio of 1:10. It simply means that each Series A Preferred Share of the company can be converted into ten common shares without any hassle. Advantages for Series A Preferred Share Holders don’t come to an end here.
Other than convertible rights, the holders of these shares will also be given voting rights by the company. Axiom Corp announced that all the Series A Preferred Share Holders will have the right to vote for one Common Share for conversion of Series A Preferred Shares.
Series B Preferred Shares of the company can be converted into common shares at a ratio of 1:10. Similar to Series A Preferred Shares, each of the Series B Preferred Share can be converted into ten common shares of the company.
Apart from the conversion, the shareholders of Series B Preferred Shares will also be given right to vote for additional common shares. As per the reports, each Series B Preferred Share Holder will have the right to vote for 25 common shares in which Series B Preferred Shares could be converted.
Management of Axiom is delighted to announce this decision. According to Tyler Pearson, Chief Executive Officer, Axiom Corp (OTCMKTS:AXMM), expansion of common share reduction up to 40 million units has helped the company in decreasing the outstanding common shares by minimum 40%. It has not only reduced the liability of Axiom, but also strengthened the share structure, which will help the company, in the long run.