OTC

otcLeatt's Preferred Stock Count Has Been Wrong for Nearly 14 Years

A 2012 reverse split was applied to the common shares but never to the preferred. Fixing the omission now cuts the preferred count from 3 million to 120,000 — and takes a large block of voting power with it.

Leatt's Preferred Stock Count Has Been Wrong for Nearly 14 Years
Illustration: markets sector, not the company's own operations. Budapest, Tőzsdepalota, kilátás, 11 — Random photos 1989, CC BY-SA 4.0, via Wikimedia Commons.

In September 2012, Leatt Corporation turned every 25 of its common shares into one. The same split was supposed to apply to its Series A Preferred Stock. It didn't — and the preferred share count has been wrong ever since.

Leatt Corp OTC: LEAT

A Certificate of Correction filed with Nevada's Secretary of State on August 11, 2026 applies the missing split retroactively, reducing the Series A preferred share count from 3 million shares to 120,000. Each of those preferred shares carries 100 votes, cast alongside common stockholders on every company matter, so the correction shrinks the voting weight attached to the preferred class by the same 25-to-1 ratio the common split used.

For common shareholders, there is a secondary effect. The Series A converts into common stock on a one-for-one basis. At 3 million shares, that was a meaningful ceiling on potential dilution; at 120,000, it is not. The filing does not say whether any conversion is planned.

The preferred stock is held by the company's founders. Earlier SEC filings show that Dr. Christopher Leatt and Jean-Pierre De Villiers received their Series A shares as founding consideration. The correction was approved by written consent of the principal holder of the Series A — the person whose voting power it reduces. That holder controlled 96,000 shares, representing 80% of the preferred voting power at the time of the vote.

The filing also rewrites the conversion-rate adjustment mechanism. The old rules included a provision that adjusted the preferred-to-common conversion rate whenever the common stock was split or consolidated — a clause designed to protect preferred holders if the common moved without a corresponding preferred adjustment. That clause is now removed, since the correction eliminates the mismatch it was written to address. A replacement provision requires that any future common split or reverse split be mirrored automatically in the preferred stock, so the gap cannot open again.

The filing gives no explanation for why the omission went undetected for nearly 14 years.

Written by the PennyStocks.News desk from company filings and releases. Figures as reported by the company; no guarantee of accuracy or completeness. Nothing here is investment advice.