Hold on a second (and thanks for this!).

If I read your document right, it says:

  The Company expects that the proceeds available for 
  distribution to the holders of Preferred Shares,
  including the full release of the Indemnity Escrow Fund, 
  will be approximately $0.5816 for each Preferred
  Share (the “Estimated Per Share Consideration”).

And in another portion, it says:

  before any distribution or payment of merger consideration 
  is made to holders of
  Common Shares, the holders of Preferred Shares are entitled 
  to receive $2.66 per Preferred Share (the
  “Liquidation Preference”).

And

  The holders of
  Common Shares will not be entitled to receive any merger 
  consideration in exchange for the cancellation
  of their Common Shares because the maximum potential merger 
  consideration payable to the Stockholders
  pursuant to the Merger Agreement is less than the aggregate 
  amount of the Liquidation Preference.

Does this indicate that the company sold for an amount low enough that not even the investors recouped their original capital (selling shares at $0.5 instead of the $2.66 they were at least worth according to the liquidation preferences, so overall a significant "failure")? Because if that's the case, it seems completely normal to me that common shares were nullified and it's fundamentally different than saying that shares were extinguished for "no reason" (i.e. out of pure corporate greed), like I interpreted GP's comment.

If not, this is instead a horror story.