Contents rights of QFX on the B/S, page-3

Preferable shares are by no means better than debts as in normal creditor loans. Preferable shares not only have an attached interest rate but also multiple conditions, in QFX case these have strangled the company since HBO sold out.

Preferable shares are a last resort funding option when creditors won't approve any loans.

Preferable shares might be conisdered a better option than converitble notes, but both create a huge over hang on company operations and dilute shareholder equity.

Of course QFX must make positive cash flows and pay down liabilities, that's obvious problem is they've never been able to achieve that and never will. Company has been bankrupt for years, never been able to restructure itself into a profitable business and never will.


Kat.