So, here it is in writing. They are doubling the authorized shares, meaning dilution and authorized a reverse split between 3/1 to 13/1 meaning more dilution. The action will keep the company listed, but will, I believe, push the price down.
(1) A proposal to ratify the filing and effectiveness of the certificate of amendment to the Company’s amended and restated certificate of incorporation (as amended) (the “Certificate of Incorporation”) filed with the Secretary of State of the State of Delaware on May 6, 2016 (the “Share Increase Amendment”), which effected an increase in the number of authorized shares of the Company’s common stock from 45,714,286 shares to 95,000,000 shares (the “Ratification Proposal”).
(2) A proposal to authorize the Company’s board of directors, in its discretion, but prior to the annual meeting of the Company’s stockholders in 2018, to amend the Certificate of Incorporation to effect a reverse stock split of the Company’s common stock at a ratio in the range of 1-for-3 to 1-for-13, such ratio to be determined by the board of directors and included in a public announcement (the “Reverse Stock Split Proposal”).
(3) A proposal to approve an adjournment of the Special Meeting, if necessary, to solicit additional proxies if there are not sufficient votes in favor of any of the foregoing proposals (the “Adjournment Proposal”).
