On , 2016, the Board of Directors unanimously app

Quote:

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On [Month] [__], 2016, the Board of Directors unanimously approved, subject to the reverse stock split described in Proposal 3, an amendment to the Company’s Certificate of Incorporation to decrease the authorized number of shares of our Common Stock from 600,000,000 to 100,000,000.

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While better, it's not quite what I was looking to see. Assuming the worst case of 25:1 and 400 million outstanding, this reduces outstanding to 16 million shares and authorized to 100 million. This still leaves a huge gap between issued and authorized of 84 million. That's still significant dilution potential of 5.25.

Let me qualify my message here, I don't foresee the worst case occurring. Based on Sri's comments and recent PR's, it's my opinion that they are close to commercial sales. Therefore, we may likely see share price rise on announcement to the range of $0.30-$0.60 9 (or higher) after a sales announcement. From here we should see a 10:1 or less split. Assuming a 10:1 and 400 million outstanding, this reduces outstanding to 40 million. This leaves 60 million available and not issued. This is a much better scenario with dilution only having a potential of up to 1.5 times.

Granted this is still just a draft proxy, so maybe they will revise it further with a little coaxing from us. At least, they clearly understood our concerns over the weekend and are willing to address our concerns. I take that as a step in the right direction and clear indication that they care about their current shareholders.

I hope this helps clarify things a bit on what the structure would be after the R/S. It's looking much better!