Dr Foods Inc. (DRFS)

[MIKEY501]

8K just released. A/S being increased to allow notes to convert.


http://ih.advfn.com/p.php?pid=nmona&article=73044245


This single share of Series B Preferred Stock provides Mr. White with a limited and specific voting right representing Fifty-one (51%) percent of the Company's voting capital stock. The Series B shares may only be voted for the single purpose of increasing the Company's authorized common stock capital associated with our two outstanding convertible promissory notes.

The sole purpose of granting Mr. White this right is to enable the Company to expedite an increase in the authorized common stock by majority shareholder written consent in lieu of a special meeting of the board of directors. This consent process is much quicker and less costly than a shareholder proxy meeting process. This expedited process is intended to preserve operating cash and prevent a material default in the Company's existing convertible promissory notes. A material default would trigger a 150% mandatory default penalty.