SHARE INCREASE TO 250 BILLION, THIS IS DEAD
The number of authorized shares of our (a) Common Stock will be increased from Ten Billion (10,000,000,000)
shares to Two Hundred Fifty Billion (250,000,000,000) shares and (b) preferred stock will be increased from One
Million (1,000,000) shares to Twenty-Five Million (25,000,000) shares (collectively, the “Authorized Share
Increase”).
PURPOSE AND EFFECT OF INCREASING THE NUMBER OF AUTHORIZED SHARES
The Board believes the Authorized Share Increase is necessary and advisable in order to maintain our financing and
capital raising ability, to comply with the terms and conditions of certain debt and equity instruments and to
generally maintain our flexibility in today’s competitive and rapidly changing environment.
An immediate purpose for increasing the authorized shares is to provide enough shares required to satisfy certain
obligations in our convertible debt and equity instruments. If the Company were required to settle its outstanding
warrants and convertible debt as of September 30, 2014, we would be required to issue 934,021,481 common shares
for the settlement of warrants and 12,190,347,336 for the settlement of outstanding convertible debt. The Company
determined that the settlement of these outstanding financial instruments would exceed our authorized
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