Preferred Shares

We provide a premier alternative investment opportunity with mitigated risk in today's small-cap market. Our Preferred Shares tranche is designed as a discounted enhanced investment class whereby the Preferred Share investment is spread across our entire portfolio. We invest these proceeds in new acquisitions, debt conversion, subsidiary growth and operations.

We consider ourselves pioneers in offering accredited, longer-term investors the opportunity to invest in one specific company while being protected by all of our subsidiaries. Investors who previously were unable to invest in Preferred Stock, now have that option.

Direct Subsidiary Investment

Investors are often provided the ability to invest in one or more of our subsidiaries. This allows accredited and institutional investors to pick which subsidiary best aligns with their investment strategies. Investors select and invest in that subsidiary of their choice. We understand that "targeted" investment opportunities are typically hard to find for the average accredited investor. Most, if not all, small-cap companies offer one series of Preferred Stock to key employees, VC Groups and Angels.

The benefits of longer-term Direct Subsidiary Investment could include:

• Reduced Taxes
• Various Conversion Rates
• SPO - Possible future "Secondary Public Offering"
• Future Dividends - Determined by each Share Class

Phased Liquidity: "Lock-Up Period"

Preferred Shareholders must agree to the "Lock-Up/Leak-Out terms of that preferred class of stock.

The Leak Out

Upon meeting the required Holding Period, Preferred Shareholders are allowed to sell up to 20% of their portfolio per year.

Not Cumulative

Preferred Shareholders cannot sell more than 20% of their remaining portfolio any calendar year. This ensures minimum impact to the common share price.