22nd Century Group Inc (XXII)

[jockinmikeg]

Authorized common stock is the max amt of stock the company is allowed to sell during its lifetime. In no way are they ever obligated to sell that amt, and 99/100 the # of auth shares is way, way, way more than the company would ever need to sell. Common procedure for any stock, from Apple all the way down to the sub-pennies.

Par value of $.00001 is just the theoretical minimum value placed on the stock and has no bearing at all on the market value of issued stock. It is usually a negligible amt close to zero. When a company issues shares for sale, the true value is the difference between issue price and par value: (i.e. XXII to Crede @ 2.58: (2.58 - .00001) = 2.5799.

Hope this helps.