Green Energy Enterprises Inc. (GYOG)

[McLovn]

Increase In Authorized Shares: Our Board of Directors again found itself having to approve an increase in our authorized shares. This time, however, our feeling was to increase it to such an extent that we won't have to keep going through increases again and again.

We needed to have adequate shares to conduct daily business while dealing with noteholder demands for increases in their share reserves in order to avoid default under the terms of the promissory notes.

Given the dilution driven by debt conversions which have been pushing the market price of the stock down, and the related, non-stop repeated calls by these same noteholders for increases in share reserves against their future conversions, the Board moved to put enough shares into treasury to cover constant noteholder reserve demands while avoiding the risk of default for not having adequate reserves set aside. Generally, these share reserve requirements are onerous. They put in reserve a quantity of shares that often assumes a share price over time of 15-20% of the market price of the stock. In other words, they assume continued downward pressure on the market price of the stock.


We publicly stated that we would not do a reverse stock split in 2015, and we will honor that commitment. Had the Board decided to reverse the stock, the increase in the authorized wouldn't have been necessary, but we believe that our shareholders would be penalized by its outcome, and decided not to do it. Part of the effect of not doing the reverse is having to increase the treasury stock.

Is this the future news ??