Reasons for the Amendment
"We are currently authorized to issue 10,000,000,000 shares of common stock with a par value of $0.00001 per share. Currently, there are 6,393,310,100 shares of Common Stock outstanding. Based upon our information, we believe that the loans will be converted in consideration of 9,600,000,000 restricted shares of common stock. We currently do not have enough authorized shares of common stock to to satisfy the option exercises and the conversion of debt to common shares. It is in our best interest to convert the debt to equity in that it will eliminate debt in the amount of $576,000. Other than the plan to issue shares upon the exercise of options and convert the debt to shares of common stock, we have no plans or arrangements to issue any additional shares of common stock.
More generally, the increase in the authorized number of shares of common stock will enable us to engage in (i) possible future financings and (ii) such other corporate purposes as the Board of Directors determines in its discretion. These corporate purposes may include future stock splits, stock dividends or other distributions, future financings, acquisitions and stock options and other equity benefits under possible new benefit plans.
After the increase in the authorized number of shares of common stock, there will be available for issuance, 4,006,689,900 shares of our common stock after giving effect to 6,393,310,100 shares of Common Stock outstanding; and, 9,600,000,000 restricted shares of Common Stock to be issued to extinguish existing debt. The par value of our common stock will remain $0.00001 share. The relative rights and limitations of the shares of common stock would remain unchanged under the Share Increase Amendment."
Convertible note buyers can get very cranky when they don't get paid...ECOS defaulted on all their convertible debentures in late 2014...
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