Cardinal Resources Inc fka CDNL

[Sir Grundleton]

If anyone is concerned about the Available Shares (AS) increasing and is worried about dilution then read this article.

investopedia

Available Shares and Outstanding Shares are not the same thing and the AS cannot be used as is to dilute. The AS must be converted to OS before they can be used.

Often, companies will increase the AS to protect against hostile takeovers. However, when pairing the AS increase with news that the Chinese subsidiary is purchasing 51% of the stock, one could reasonably deduce that the majority of the OS is already owned and they wouldn't be able to sell 51% of the stock with the current share structure. In other words, they are probably increasing the AS to have the amount of shares needed to follow through with the terms of the joint venture.

Another possible explanation for the increase is in the 8-k. It clearly states that every one of the shares being purchased by the Chinese subsidiary is RESTRICTED.

RESTRICTED SHARES CANNOT BE USED FOR ANYTHING UNTIL THE SEC GIVES APPROVAL. PURCHASING 7.5 MILLION WORTH OF RESTRICTED STOCK IS A HUGE RISK FOR THE PURCHASER AND SHOWS THE VALUE THAT THEY BELIEVE CDNL HAS.

CDNL would have to increase the AS to issue RESTRICTED shares to the Chinese. They cant take them from the OS without buying them back first.

Educate yourselves before you listen to other people. In your every day life and especially here. Not everyone has the values you may have and will let greed control them and then do whatever they have to do to get your money. I recommend reading through post made to other boards by people who post negativity.