Great news with the filing this morning. Things are on track and are happening as promised.
This time, it looks like we may have a little wait until the name change.
What happened here is that the majority shareholders of Advanced Environmental Petroleum Producers, Inc., a FL corporation (AEPP), took action without a shareholder meeting, as permitted under FL law, for the purpose of (1) increasing A/S count to 950M; and (2) changing the name of AEPP under FL law to Oncolix, Inc.
The Merger Agreement contemplated that both of these items would occur following the closing of the merger; none of this is a shock.
Apparently, the SEC has a rule (14c2) that requires an information statement to be mailed to all shareholders when, among other things, a company's shareholders take action without a meeting.
The rule also prohibits the company from taking action on any items disclosed in an information statement for at least 20 days from the date of the mailing.
In this case, this morning's filing says the information statement will be mailed to shareholders of record as of September 6, 2017.
Assuming that AEPP holds to this (no reason to think they won't), then the earliest the mailing can go out is 9/6/17, and the earliest that the name change and increase in A/S can occur is 9/26/17 (i.e., 9/6 + 20 days).
Keep in mind, this is simply the state-law name change of the corporation, AEPP, that we all own stock in.
I am not sure (perhaps someone else can clarify) if the FINRA ticker change can occur before the state-law name change or if the state-law name change is a prerequisite for the FINRA ticker change.
Finally, for those concerned about potential dilution in connection with the increase in A/S to 950M, I have two thoughts for consideration.
First, of course dilution will occur to some degree - this company is a pre-revenue, clinical stage biotech company that has to fund trials (but that, importantly, has enough funds to get to 2018).
Second, the majority shareholders who voted for the increase in A/S are the MAJORITY SHAREHOLDERS IN THE COMPANY and have the most to lose from any dilution that might occur (they own the most shares and most of them are locked for 12 months following the merger).
Given that these majority shareholders are fairly large institutional biotech investors, I trust that they made a decision they feel is in their best interests. Gives me comfort anyway - your mileage may vary.
AI
