Friday, March 21, 2008 9:28:21 AM
Proposal #3: REVERSE SPLIT OF COMMON STOCK ISSUED AND OUTSTANDING
We are asking shareholders to approve a pro-rata reverse split of our
common stock, by which up to each three shares would become one share.
Fractional shares will be rounded up to the next whole share. The effective date
of the reverse split will be when the Board decides to effectuate the split
within one year after date of the meeting. This is not a "going private"
transaction, and no shareholders will be reduced to less than one share.
We believe the recent per share price of the common stock has had a
negative effect on the marketability of the existing shares, the amount and
percentage of transaction costs paid by individual stockholders, and impairs the
potential ability of the Company to raise capital by issuing new shares due to
the low price.
We believe that reverse split will be advantageous to us and to all
shareholders, because it may provide the opportunity for higher share prices
based upon fewer shares. It is also a factor that most brokerage houses do not
permit or favor lower-priced stocks to be used as collateral for margin
accounts. Certain polices and practices of the securities industry may tent to
discourage individual brokers within those firms from dealing in lower-priced
stocks. Some of those polices and practices involve time-consuming procedures
that make the handling of lower priced stocks economically unattractive. The
brokerage commissions on the purchase or sale of lower priced stocks may also
represent a higher percentage of the price than the brokerage commission on
higher priced stocks.
Shareholders should note that, after the reverse split, the number of
our authorized shares will remain unchanged, while the number of issued and
outstanding shares of our company will be reduced by the factor of the reverse,
i.e. up to one for one hundred shares. It is important to realize that the
issuance of additional shares is in the discretion of the Board of Directors, in
their best business judgment, and our shareholders will have no right to vote on
future issuances of shares except in the event of a merger under Colorado law.
This means that, effectively, our shareholders will have no ability or capacity
to prevent dilution by the issuance of substantial amounts of additional shares
for consideration that could be considerably less than what our existing
shareholders paid for their shares. In many events, control of our company could
effectively be changed by issuances of shares without shareholder approval.
I am only expressing my personal opinions or repeating public information from SEC filings or media outlets-which may or may not be correct. Do your own investigating before investing!
Recent CPMD News
- Form 8-K - Current report • Edgar (US Regulatory) • 09/17/2024 02:39:59 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 08/14/2024 08:16:34 PM
- Form 8-K/A - Current report: [Amend] • Edgar (US Regulatory) • 02/22/2024 12:55:22 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 02/16/2024 05:02:25 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 12/06/2023 09:01:08 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 11/17/2023 09:05:45 PM
- Form NT 10-Q - Notification of inability to timely file Form 10-Q or 10-QSB • Edgar (US Regulatory) • 11/14/2023 08:01:34 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 11/13/2023 06:51:01 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 10/13/2023 06:38:01 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 10/13/2023 02:20:32 PM
- Form 3 - Initial statement of beneficial ownership of securities • Edgar (US Regulatory) • 10/03/2023 06:13:01 PM
North Bay Resources Commences Operations at Bishop Gold Mill, Inyo County, California; Engages Sabean Group Management Consulting • NBRI • Sep 25, 2024 9:15 AM
CEO David B. Dorwart Anticipates a Bright Future at Good Gaming Inc. Through His Most Recent Shareholder Update • GMER • Sep 25, 2024 8:30 AM
Cannabix Technologies and Omega Laboratories Inc. Advance Marijuana Breathalyzer Technology - Dr. Bruce Goldberger to Present at Society of Forensic Toxicologists Conference • BLOZF • Sep 24, 2024 8:50 AM
Integrated Ventures, Inc Announces Strategic Partnership For GLP-1 (Semaglutide) Procurement Through MedWell USA, LLC. • INTV • Sep 24, 2024 8:45 AM
Avant Technologies Accelerates Creation of AI-Powered Platform to Revolutionize Patient Care • AVAI • Sep 24, 2024 8:00 AM
VHAI - Vocodia Partners with Leading Political Super PACs to Revolutionize Fundraising Efforts • VHAI • Sep 19, 2024 11:48 AM