Increase in authorized is to maintain a reserve available to note holders to avoid potential legal actions for not having a reserve available. Currently the reserve requests are higher than our A/S, forcing me to seek an increase. These shares have not been issued to date, but some note holders are asking a 500% reserve. In my experience this is to keep the company from taking on new notes, or issue shares that can cause competition to existing lenders trying to sell. - that last sentence is an opinion.
The notes being converted were past the period of repayment before my time. I have been in contact with all of the lenders over the past months and none have been willing to settle without a huge cost to the company (avg 4 times the loan price). As most of the original 5-6 lenders are close to being paid thru converting, it seems some have no regard for our PPS over these final weeks. -that last sentence is an opinion.
While I'm frustrated that a lender would need to reserve $200-$400k worth of stock for a $35k loan, the good news is that once paid, the reserve is lifted and the shares back in treasury. In the meantime our focus is on sales and distribution, primarily Boston's Marina Bay.
Thank you
Brian Conway
845-610-3817
