Ringer,

It would not affect common shareholders. Generally, companies can offer two types of stock: common and preferred stock, each with its advantages and disadvantages for investors. We would benefit from a lift in the share price since we would be in a revenue and profit positive position.  Maybe Frank would issue us common share holders a dividend but the preferred shares get priority.  If the common share price soars, I won't be asking Frank for anything more - he did his job in my eyes.

Common stock and preferred stock both represent some ownership of a company. Holding shares of common stock gives you the ability to vote for the board of directors. Owning preferred stock usually guarantees the payment of dividends but does not come with voting rights. 

Ownership in either type of stock entitles you to a piece of company profit. One way profit is distributed to the shareholders is through dividends, which are often paid in cash from the company's earnings. Dividends are usually paid on a quarterly basis.

Common stockholders never know the value of their dividends in advance, while preferred stockholders receive dividends at a fixed rate. While the dividends on preferred stocks tend to be higher than those on common stock, they will not appreciate with company growth.

I sometimes think of preferred shares as somewhere between a stock and a corporate bond, as they trade on an exchange the way stocks do, but the dividends are generally quite high, like those from long-maturity bonds.

All this to say, this is only good news for KWG shareholders.  KWG must expect that they are going to be able to be in a revenue and profit positive position in the foreseeable future and as a way to finance acqusition of assets, are offering preferred shares to some entity that wants to come in and take an ownership stake in this manner and receive a reliable stream of income from the preferred shares.  

I could not be more excited about this news and what it could mean for KWG. 

My best to all KWG Longs,

Keep Digging