Green Leaf Innovations Inc (GRLF)

[Warmy]

A company can request that their AS be reduced with the state of registration but that is a separate process and rarely happens. If only an R/S is done then only the OS is affected. That is why an R/S is looked upon so badly in this market. A company can reduce the amount of shares in the market while effectively increasing the authorized shares available to sell.

Example...

A company has 6 billion shares authorized (AS) and they are maxed out with 6 billion shares outstanding (OS) in the market. If they did a 2-1 R/S then they would still have 6 billion AS but now only 3 billion shares OS at double the price in the market. That would then give them 3 billion more shares free to issue.