What does this mean? PLease check link below?

Question

http://biz.yahoo.com/e/070214/prw8-k.html

Answer 1

Along with common stock, the company previously issued preferred stock which when mature (which is now) and are "called", convert or are turned into common stock (instead of the holders receiving cash). It appears there will be 1/3 more shares of common stock issued, so the value of the common stock now out there will decline by about 1/3rd.