Minerco Inc (MINE)

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The current net tangible book value per share would be diluted if additional shares are issued without an increase taking place in the net book value of the assets of Minerco. The Common Stock Split will reduce the number of outstanding shares of common stock to approximately 34,844,402; however, the authorized shares will not be reduced by the same proportionate amount and will only be reduced to 250,000,000 and the issuance of the remaining 215,155,598 would have a material dilutive effect upon existing stockholders. These additional shares may be issued in the future for a variety of corporate purposes including, but not limited to, raising additional capital, corporate acquisitions, and equity incentive plans. Except for a stock split or stock dividend, future issuances of common stock will dilute the voting power and ownership of our existing stockholders and, depending on the amount of consideration received in connection with the issuance,

could also reduce stockholders’ equity on a per share basis. In addition, the Preferred Stock Split will reduce the number of shares of Series A preferred stock outstanding to 150,000 shares; however the authorized shares will remain at 15,000,000 and the issuance of the remaining 14,850,000 would have a material dilutive effect upon existing stockholders.