CICS - Raising A/S to 10 billion from 500,000,000. From PRE 14C filed 11/04/09:
"The purpose of this Information Statement is to notify you that the holder of shares representing a majority of the voting power of Carbonics Capital Corporation has given its written consent to a resolution adopted by the Board of Directors of Carbonics to amend the certificate of incorporation of Carbonics so as to increase the number of shares of authorized common stock from 500,000,000 shares, $.001 par value, to 10,000,000,000 shares, $.0001 par value."
"The Board of Directors approved the amendment in order to comply with Carbonics' agreements with its senior creditor, YA Global Investments, L.P. ("YA Global"). The convertible debt instruments held by YA Global require that Carbonics maintain a sufficient number of shares of authorized common stock to enable conversion of the convertible debt issued by Carbonics to YA Global. At the present time, Carbonics has no shares available for issuance upon conversion and is therefore in default of those debt instruments. Although Carbonics' ambition is to satisfy its debt to YA Global in cash deriving from one or more potential future financing transactions, it is necessary that this default be cured in the meantime"
"On October 30, 2009, the holder of a majority of the voting power of the outstanding voting stock gave its written consent to the amendment. The amendment will be filed and become effective approximately twenty days after this Information Statement is mailed to the shareholders.
At the October 30, 2009 Record Date, 500,000,000 of the currently authorized 500,000,000 common shares were issued and outstanding, leaving none available for issuance. The effect of the amendment will be to increase the number of authorized shares of common stock from 500,000,000, $.001 par value, to 10,000,000,000, $.0001 par value.
The primary reason why the Board of Directors and the majority shareholder have approved the increase in authorized common stock is the requirement contained in Carbonics' agreements with YA Global to maintain a sufficient number of shares of authorized common stock to enable conversion of debt issued by Carbonics to YA Global. In addition, Carbonics needs to have shares available in the event that other outstanding convertible debentures are converted."
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