Business: Meritage Hospitality Group, Convertible Preferred, Series B, liquidation preference $10 per share, redeemable at the issuer's option on or after the Third anniversy of the offering at $10 per share plus accrued and unpaid dividends, and with no stated maturity. <p> Cumulative distributions of 8% per annum ($0.80 per annum or $0.20 per quarter) will be paid quarterly on 3/1, 6/1, 9/1 & 12/1 to holders of record on 2/15, 5/15, 8/15 & 11/15 prior to the payment date (NOTE: the ex-dividend date is one business day prior to the record date). The preferred shares are convertible any time at the holder's option into common shares of Meritage Hospitality Group at a conversion price of $5.57. <p> In regard to the payment of dividends and upon liquidation, the preferred shares rank junior to the company's senior debt, equally with other preferreds of the company, and senior to the common shares of the company. See the IPO prospectus for further information on the preferred stock by clicking on the ‘Link to IPO Prospectus’ provided below.