Here. Read up... And note my next post. This is directly from the filings with sec.gov. The amendment takes effect 20 days after the initial mailing of the notice. Which was June 20.
"The board of directors believes that authorizing this increase in the number of authorized shares of common stock is in the best interest of Minerco and its stockholders in that it could be obligated to issue common stock upon conversion of certain existing outstanding convertible debt and preferred stock in excess of the amount authorized and it will provide the Company with available shares that could be issued for various corporate purposes which may be identified in the future, including acquisitions, stock dividends, stock splits, stock options, convertible debt and equity financings. On June 20, 2014, Minerco had 61,709,187 shares of common stock available for issuance after taking into account all shares reserved of convertible securities which we believe may not be sufficient to satisfy all outstanding debt obligations
On June 20, 2014, we had debt in outstanding principal balance of $340,137 convertible into shares of common stock based upon the closing price of our stock on the conversion date ranging between 35% and 60% of the closing price of the stock. In addition, our Series A Preferred Stock converts into shares of common stock at a rate of 10 shares of common stock for each share of Series A Preferred Stock and each share of Series A Preferred Stock is entitled to 10 votes for every share of common stock into which it is convertible. Our Series B Preferred Stock coverts into shares of common stock at a rate of 500 shares of common stock for each share of Series B Preferred Stock and each share of Series B Preferred Stock is entitled to 5 votes for every share of common stock into which it is convertible.
Since the debt does not convert at a fixed conversion price it is difficult for us to accurately quantify the number of shares that we will be required to issue upon such conversions. Using the June 20, 2014 numbers, if all of the Company’s outstanding debt, warrants and all of our preferred stock were to convert to common stock, we would be required to issue approximately an additional 1,100,000,000 shares, which would exceed the number of shares currently available for issuance (even when including the existing “reserves” for certain convertible notes). If the stock price were to drop to $0.001 per share, we would be required to issue approximately an additional 2,100,000,000 shares of our common stock to cover all of our current obligations. The board of directors believes that it is in Minerco's and Minerco's stockholders' best interests to authorize it to increase the availability of additional authorized but unissued capital stock to enable Minerco to promptly take advantage of market conditions and the availability of favorable opportunities without delay and expense associated with holding a special meeting of stockholders and to enable it to meet any obligations it may have to issue shares of common stock."
Please bite my next comment too..
