my understanding of this conversion

What is happening on Sep 9th is conversion of preferred shares to common shares. It doesn't effect the book value. It would be easier to visualize it if we look at preferred shares as a type of debt (they are similar to bond in a way).
Having 1 common share, $2 dollar asset and $1 in debt would mean the 1 share worth $1.
Converting the debt to equity, then we have 2 common share, $2 dollar asset and no debt. And 1 share still worth $1.
The difference would be more shares (around 22B),higher market cap and the company doesn't have to pay the dividends for preferred shares.

just my two cents.