Kallo Inc. (KALO)

[Sage7243]

Dear BH,

Here is plenty of communication: (see highlights)

(1) 52,766,666 shares of common stock are reserved for our 2011 Non-Qualified Stock Option Plan (the "Plan"). These shares have not been issued and are not outstanding but merely designated for issuance pursuant to the Plan.

Our authorized and unissued shares could possibly be used by management to oppose a hostile takeover attempt, delay or prevent changes of control, or changes in or removal of management. This could include transactions that are favored by a majority of stockholders, or in which the stockholders might otherwise receive a premium for their shares over then-current market price, or benefit stockholders in some other manner. Tender offers or other non-open market acquisitions of stock are usually made at prices above the prevailing market price. In addition, acquisitions of stock by persons attempting to acquire control through market purchases may cause the market price of the stock to reach levels that are higher than would otherwise be the case.

The available authorized and unissued shares of common stock gives the company the ability to cause a potential anti-takeover effect by creating potential dilution to the number of outstanding shares. Such dilution will cause a party attempting a takeover to be required to buy more shares of the company stock and to expend additional resources to accomplish a takeover.


In other words, if someone tries to pump our stock in a manipulative manner, we will take action before the SEC halts our stock. This is a responsible action, I think.


And, I am buying more.

http://www.sec.gov/Archives/edgar/data/1389034/000100201415000030/kalo-sch14cpre.htm