As of the date of this proxy statement, the Company had 23,366,328 outstanding shares of common stock which were owned by 1,164 shareholders of record. A total of 1,089 shareholders own less than 500 shares (approximately 840 shareholders own ten or less shares). These 1,089 shareholders collectively own approximately 30,868 shares of the Company’s common stock. Based upon the closing market price of the Company’s common stock on December 1, 2015 ($0.01 per share), 500 shares were worth $5.00. Since the Company’s transfer agent charges $30.00 to transfer a certificate, 500 shares of the Company’s common stock (or any lesser number) are essentially worthless. By eliminating over 1,000 shareholders of record whose shares do not have any practical value, the Company can greatly reduce the cost associated with mailing proxy statements and other communications to its shareholders.
Accordingly, Stockholders are being requested to approve a 500-for-1 reverse split of the outstanding shares of the Company’s common stock.
The reverse split, if adopted, would not change the number of shares of common stock which the Company is authorized to issue. However, a reverse split would reduce the number of the Company's outstanding shares, which would enable the Company to issue more shares than it would be able to issue if the reverse split was not adopted.
No fractional shares will be issued if the reverse stock split is approved. The Company will pay $0.001 for any fractional share resulting from the reverse stock split. To obtain payment, shareholders owning a fractional share must send a written request to the Company at the address shown on the first page of this proxy statement.
At the present time the Company’s common stock trades on the over the counter market system maintained by the OTC Markets Group. The Company has no plans to terminate the registration of its common stock under the Securities Exchange Act of 1934 as a result of the stock split.
The Company's Board of Directors recommends that stockholders vote for this proposal.
LET'S ALL MAKE SOME $$$$$$$
