AMFN exchanges $2.88M officer compensation for Series C preferred stock

AMFN exchanged $2.88M in contractual stock-based compensation owed to twelve officers, directors, consultants and advisors for 288,000 shares of newly designated Series C Convertible Preferred Stock, extinguishing prior claims. The Series C Preferred is senior to common stock on dividends and liquidation, diluting common equity and signaling cash constraints given the company disclosed substantial going-concern doubt in its auditor's last report.

The company replaced $2.88 million in promised stock payments to insiders with a new type of preferred stock that ranks ahead of regular shares in a crisis. This suggests financial strain.