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Capital Structure
At the time of decedent’s death, there were outstanding one
series of common stock of the corporation and eight series of
preferred stock. With the exception of the Series F preferred
stock, all series of preferred stock were convertible to common
stock at the ratio of 1 to 1. The Series F preferred stock was
convertible at the ratio of 1.05 shares of common stock to
1 share of preferred.
Financial Performance
From 1986 through 1989, the corporation’s revenues and net
income were as follows:
FYE Revenues Net Income
1986 $435,000 ($4,928,000)
1987 4,375,000 (5,080,000)
1988 13,755,000 (1,689,000)
1989 30,445,000 4,382,000
Private Sales of Stock
From its inception through June 1990, the corporation sold
13,331,060 shares of preferred stock at prices ranging from $1 to
$4.
On August 24, 1989, common stock of the corporation was
authorized to be sold to certain outside sales representatives of
the corporation for $1.25 a share. On December 8, 1989, common
stock of the corporation was authorized to be sold to certain
outside sales representatives of the corporation for $2.25 a
share. The purpose of those sales was to give those sales
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Last modified: May 25, 2011