ANPZ's reason for the 10mil preferred shares:
Our board of directors believes that the authorization to issue preferred stock will provide us with additional flexibility to consider and respond to future business needs and opportunities as they arise time to time, including capital raises, financings and acquisitions. We are continually evaluating our financial position and analyzing the benefits of issuing additional equity securities, debt securities, convertible securities or a combination thereof in connection with, among other things: (i) repaying indebtedness, (ii) furthering our capital management strategy, (iii) financing acquisitions, and (iv) strengthening our balance sheet. Under the amendment, our board of directors, without any further approval by shareholders, will be authorized to establish, from time to time, classes or series of preferred with such dividend rates and preferences, conversion provisions, voting rights, redemption provisions, liquidation rights and preferences, preemption rights, maturity dates and other rights and preferences as our board of directors may deem advisable and in the best interests of the Company and our shareholders.
The availability of shares of preferred stock would give us the flexibility to respond to future capital raising, financing and acquisition needs and opportunities without the delay and expense associated with holding a special meeting of shareholders to obtain further shareholder approval. No additional action or authorization by our shareholders will be necessary prior to the issuance of such additional shares, unless required by applicable law or the rules of any stock exchange or national securities association trading system on which our common stock is then listed or quoted. The ability to respond to our needs and opportunities on an expedited basis may be advantageous to us, depending on market conditions at the time. A particular issuance, if any, will depend on many factors, including market conditions and our financing and capital management plans at the time.
We do not currently have any commitment, arrangement, understanding or agreement to issue shares of preferred stock.
