Virgin Gold is undertaking an exercise of issuing fresh Convertible Preferred Stocks (CPS) and invites willing investors worldwide to take up this offer. The offer price starts at $0.80/share on 1 January, 2010 and will be increased periodically in accordance with the net asset value of the company. Such offering may be subject to a time limitation and the corporation’s need for capital.
Although preferred stock does not offer the same potential for profit as common stock, it is a more stable investment vehicle because it guarantees a regular dividend not directly tied to the market like the price of common stock. This type of stock guarantees dividends, unlike common stock.
The other advantage of preferred stock is that preferred stockholders get priority when it comes to dividend payment. In the event of a company’s liquidation, preferred stockholders get paid before those owning common stock. In addition, if a company goes bankrupt, preferred stockholders enjoy priority distribution of the company’s assets; while holders of common stock do not receive corporate assets unless all preferred stockholders have been compensated.
Like common stock, preferred stock represents ownership in a company. However, owners of preferred stock do not get voting rights in the business.
Convertible Preferred Stocks (CPS)
Convertible preferred stock is a type of stock which has a conversion price named at its issuance so that it can be converted to a company’s common stock at the set rate.
Virgin Gold Convertible Preferred Stock may be converted into Common Stock of the company when the company chooses to launch an Initial Public Offering (IPO) by paying 50% of the price difference between the subscription price of Convertible Preferred Stock and the IPO share price.
Virgin Gold Convertible Preferred Stockholders are entitled to a fixed monthly dividend payment as agreed at the time of subscription. Convertible preferred stockholders may also unsubscribe their shares by giving 45 days’ notice to the company for a full refund of the subscription amount.
1) – CPS stockholders get fixed monthly shareholder dividends. These are paid in ounces of gold, which are freely convertible into monetary value at the spot gold price. Shareholders may unsubscribe by giving 45 days’ notice.
[…see all certificates…] (Paper Gold certificate numbers 45168390001 – 45168390010).
2) – International Gold Trading. CPS holders are given capital and an interest free account in which to hold paper gold up to 3 times their share subscription value. Another great opportunity to further increases their medium to long term return.