We have over three million outstanding with four million issued so the most a takeover company could purchase is approximately 25% of the company as of right now since we have 7.5 million authorized but not yet issued.
The adding of additional shares up to 30 million, would help these anti-takeover situations however would also more than likely be used during future stock offerings hopefully when our valuation is much higher than it is.
If you recall the last stock offering that never occurred was because the valuation we had to reach was 75 million for the offering to occur.
As long as the company is smart enough to wait until we increase our valuation to utilize another stock offering, which I'm sure they would as they are all involved in the company and hold shares, typically at this point they will wait until a large contract is put out and the price fluctuates in a positive manner in which they will utilize an S3 to raise more funds with the additional authorized shares.
That would be the worst, (but still not bad) case scenario for current shareholders even though the level they use the S3 would be at a much higher valuation so you wouldn't be losing money from this point if you purchase shares now.
The additional shares could also be part of the morf3d merger in which they would be granted shares at a particular price most likely very near to where we are now and which we wouldn't face any dilution. In fact if they bring assets to the table as they most likely will be, they could potentially add value by being granted these shares at the market price along with their assets.
There are a few different ways a company can go about this by either granting them shares or having them purchase shares to own a portion of Sigma labs via the merger. Assuming they don't have much cash since they are a startup, if we granted them shares for in return of a portion of their assets and revenues as the merger would consist of, the trade would be beneficial for both companies, giving them stock value and giving us their assets value and a share of their revenues as per the releases regarding the merger.
Same goes with Jaguar.
It should be very interesting indeed but I can certainly see this benefiting everyone involved including Sigma labs.
