Diversified Resources Inc. announced that it expects to receive $10 million in funding
Each series A preferred share will be entitled to a dividend of $0.10 per share, payable annually, in cash, with the first dividend payable 12 months following the closing of the transaction. Dividends not paid will cumulate at the company's option, dividends may be paid in shares of the company's common stock. If dividends are to be paid in shares of common stock, the number of shares to be issued in payment of the dividend will be determined by dividing the amount to be paid by the average closing price of the company's common stock for the 10 trading days which precede the dividend payment date by five trading days.
At the holder's option, the series A preferred shares are convertible, in increments of not less than 10,000 shares, into shares of the company's common stock on the basis of one share of preferred stock for one share of the company's common stock. The series A preferred shares are redeemable, in whole or in part, at the company's option, any time after 36 months from the date of the closing of the offering, upon 30 days' written notice and payment of $1.20, plus all accrued dividends for each share to be redeemed. The preferred shares and warrants may not be sold without the registration of the securities.