For some of you this might be about as interesting as dry toast. For others, it’s the little details like these that make this job an adventure. I’m in the latter group, though being a nuance-junkie is hardly required to be a successful stock trader.

Anyway, in my routine scans for news and information that didn’t get publicized, I came across an interesting 8K filing for Bio-Matrix Solutions (BMSN). Last week, the Board of Directors authorized 100,000 preferred shares….series AA. They’ve already authorized 20 million preferred shares, and only issued 915K of them. The fact that authorized 100,000 more tells me the new ’series AA’ shares are different than the ones already on the books.

I’m still trying to track down the important differences…I’ll let you know when I do. However, I think the most important characteristic is their voting rights. Each series AA preferred share casts 10,000 votes, compared to each common stock share, which cast one vote.

As for the newly-authorized preferred shares, they’ve granted 4852 of them to CEO David Koos.  

The idea is (and I basically agree) to help stave off any would-be companies looking to make an acquisition. The apparent downside is a concentration of control held by one person. Good thing Koos has a vested interest in the company’s success; he’s made personal loans to the company, so he wants to see it succeed as much or more than anybody.

As far as capitalizations go, this one’s fairly run-of-the-mill for small cap companies. I don’t see any issue with it; I just wanted to make sure all of you were aware in case the question comes up later.

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