It says it in these SEC filings here. They are currently waiting on the vote for the increase. Not saying this run is over by any means, but it is true about the increase in authorized shares.
8. Subsequent Events from 10q
On May 23, 2017, the Registrant converted $1,127,408.20 in Series O-2 convertible notes principal and related accrued interest (67% of the total of Series O-2 notes) into 1,127,410 shares of Registrant’s Series A preferred stock. Each share of preferred stock has the voting rights of 254 common shares. The preferred shares in total represent approximately 58% of all voting common shares. Three resolutions were presented to the Series A preferred shareholders and the Registrant is currently awaiting the voting results. The first resolution is to approve the increase in authorized common shares from 500 million to 5.0 billion. The second resolution is to approve the sale of up to ten reactors, peripheral production and lab testing equipment, and licensing of certain QSI patents to Vivakor, Inc. The third resolution is to grant authority to the Registrant’s board to pursue a merger with, sale to, or acquisition of another operating company. See the Company’s Form 8-K filed on May 31, 2017.
ITEM 8.01 OTHER EVENTS from 8k
On May 23, 2017, the Registrant converted $1,127,408.20 in Series O-2 convertible notes principal and related accrued interest (67% of the total of Series O-2 notes) into 1,127,410 shares of Registrant’s Series A preferred stock. Each share of preferred stock has the voting rights of 254 common shares. The preferred shares in total represent approximately 58% of all voting common shares. Three resolutions were presented to the Series A preferred shareholders and the Registrant is currently awaiting the voting results. The first resolution is to approve the increase in authorized common shares from 500 million to 5.0 billion. The second resolution is to approve the sale of up to ten reactors, peripheral production and lab testing equipment, and licensing of certain QSI patents to Vivakor, Inc. The third resolution is to grant authority to the Registrant’s board to pursue a merger with, sale to, or acquisition of another operating company. Upon approval to increase authorized common stock to 5.0 billion, the holders of Series A preferred stock may either retain the preferred shares or elect to convert into common shares. The amount of common shares to be issued upon conversion are the 67% total of original principal and accrued interest divided by the 30-day VWAP (volume average weighted price per share) for the 30-day period preceding the conversion date. The common shares are to be restricted for six months after conversion date. If the remaining notes are not purchased by a third party for full face value (i.e., 33% of the original principal amount and the then issued and outstanding accrued interest), within six months, the Series O-2 noteholders must convert the remaining original principal and accrued interest of the Series O-2 notes into the Registrant’s common stock based upon the 30-day VWAP (volume average weighted price per share) for the 30-day period preceding the six-month anniversary of conversion of 67% of the Series O-2 notes.
