Let's say we have 800 million outstanding shares n
Post# of 30067
Posted On: 08/13/2014 9:46:22 AM
Let's say we have 800 million outstanding shares now and 1 billion authorized shares. That means 80% of the authorized shares have already been diluted, meaning there is only 20% left to dilute.
But, if we authorize an additional 1 billion shares, we'll still only have 800 million outstanding shares compared to 2 billion authorized. That means 40% of the authorized shares have already been diluted, meaning there is 60% left to dilute.
This comparison is the true relationship between where we are now versus where we would be after the vote, regarding potential dilution. Now, we only have 200 million shares available to dilute, whereas after a positive vote we would have 1.2 billion shares available to dilute, 6 times more!
That is asking a lot. I am willing to give it. But Gerald needs to deliver in the next 5 weeks before I do.
If the stock is doing well and we are trading above .40 cents, a 1:10 RS would not hurt us, IMHO. If the stock is still struggling and we are at .10 cents, we'd have to do a 1:40 RS. I would even be willing to do that if it got us to a national exchange. But since the stock would still be struggling, I wouldn't want to do both a large RS AND increase our authorized shares by one billion.
If in the next 5 weeks things go as Gerald has outlined, I'm sure it will all work out and I'll vote for the increase in authorized shares. But I won't vote for it under any circumstances. Things need to come together a bit more first.
But, if we authorize an additional 1 billion shares, we'll still only have 800 million outstanding shares compared to 2 billion authorized. That means 40% of the authorized shares have already been diluted, meaning there is 60% left to dilute.
This comparison is the true relationship between where we are now versus where we would be after the vote, regarding potential dilution. Now, we only have 200 million shares available to dilute, whereas after a positive vote we would have 1.2 billion shares available to dilute, 6 times more!
That is asking a lot. I am willing to give it. But Gerald needs to deliver in the next 5 weeks before I do.
If the stock is doing well and we are trading above .40 cents, a 1:10 RS would not hurt us, IMHO. If the stock is still struggling and we are at .10 cents, we'd have to do a 1:40 RS. I would even be willing to do that if it got us to a national exchange. But since the stock would still be struggling, I wouldn't want to do both a large RS AND increase our authorized shares by one billion.
If in the next 5 weeks things go as Gerald has outlined, I'm sure it will all work out and I'll vote for the increase in authorized shares. But I won't vote for it under any circumstances. Things need to come together a bit more first.
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