Demand Brands Inc. (DMAN)

[xyz1002]

A company's board must approve how many shares are totally authorized to be issued and must be reported as well.

So, for example, a company board can say, the authorized shares (AS) is 250 million. Then the CEO can issue however he wants, say for example 100 million which is called the issued or outstanding shares (OS). Then the CEO still has 150 million that he can issue. Let us say the CEO issues the remaining 150 million then at that point the outstanding shares (OS) is already 250 million, equal to the AS.

At this stage, the CEO can't issue more shares as there are no more shares left from the AS. To do so, he has to first increase the AS.

The biggest problem facing the penny stocks is the CEO's always selling shares to raise money. That creates more supply than demand and the price keeps going down. Thats\'s why almost always one loses money in penny stocks.

In the case of INMG the AS is 250 million and the OS is 207 million. So only 43 million shares are available to be issued. In other words, there is not much risk remaining for shares flooding the market. At least that risk is eliminated until they increase the AS.

Hope that helps.