The number one reason for taking any company public, whether from start-up posture or via a reverse merger, is always going to be an attempt to access public funds in order to launch and grow the business. That said, the authorized share count at this moment should not be regarded as a permanently fixed due diligence item. Rest assured, if a reverse merger is in the cards for PUGE, the current share structure will be thrown out as it would not strengthen any program aimed at accessing capital markets. The basis for increasing capitalization lies in creating a broader base of operations. That translates into more shares and more share holders.
Assuming there's to be a reverse merger in play fairly soon, new offices will need to be opened in order to facilitate business operations. There's equipment to be purchased or leased, office personnel to continue operations, countless services required to maintain smooth running. Credit facilities must be established in the name of the newly emerging company along with bank accounts and accounting responsibilities established and secured. This involved tax people, legal people and IT facilities.
All this takes money-----and a lot of it when involving a publicly traded enterprise. And all of the preceding are very much in the minds of those contemplating future needs for this about-to-be-reborn company, I'm absolutely convinced.
Publicly traded companies gain access to money through loans (debt) and equity sales (shares). There will be warrants issued which, along with equity sales via offerings, will create dramatic changes if we're discussing share structure. And there will probably be options to be granted to employees as part of the compensation offered. Warrants and options can mortgage a company's future while providing important securitization, too.
The 110 million shares authorized are more of a reflection of the prior leadership's design than anything else. It doesn't seem to have anything to do with current leadership.
I don't know for sure what CEO Burckhardt has in mind for us, to wit:
1. The corporate focus
2. Retention of the corporate name and ticker symbol PUGE
3. desired listing goals---big board would be my guess but that comes at a high cost which would translate into numerous offerings which will certainly come to mean major dilution.
This last point is a big one as dilution usually frightens people away when, in fact, it's the normal course opf events for companies wishing to create a greater footprint.
My excitement arises as a result of confidence in Mr. Burckhardt's enthusiasm for business operation. He's got some ego and I applaud that for it tells me he maintains high personal standards when it comes to ethics.
That's my rant today! These are my thoughts only. I don't pretend to speak for the company or any others.
