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I think you are mistaken. The pages are split -- see that closed quote and parenthesis. That quote is a continuation from pdf page 3, which has the opening pa
by x0x0 8mo ago
I think you are mistaken. The pages are split -- see that closed quote and parenthesis. That quote is a continuation from pdf page 3, which has the opening parenthesis. Each of the cells for classes A, B, C overflow onto one page (each) that follows.
So the C holders are entitled to a distribution on sale or repurchase, but not an annual distribution.
> The Preferred 'C' Shares are entitled to receive dividends (and shall rank equally with the 'A' Ordinary Shares and 'B' Ordinary Shares). On a return of the entire capital of the Company or a winding up (other than a redemption of Shares or the purchase by the Company of its own Shares), the surplus assets of the Company available for distribution among the members (the "Distribution
... which leads into your quote above.
Frustratingly, it seems to be impossible to link these pdfs directly.
- rahimnathwani 8mo agoI didn't say it was an annual distribution. I was quantifying the 'plus any return owed' in the original article. In a sale, the C holders get the greater of: A) a % of proceeds as if all shares were ordinary shares, or B) what they paid the company for their shares PLUS 18% per annum accrued interest. So if the company were sold 9 years after they invested X, and the sale proceeds were less than 4X, the C shareholders would get 100% of the proceeds, the ordinary shareholders would get nothing.
- x0x0 8mo ago> I didn't say it was an annual distribution. You're quite right, I misread your post. Gonna learn to read one today, but clearly not today.