Hybrid Coating Technologies Inc (fka HCTI)

[janice shell]

I dont think rule 144 specifically precludes dilution, but it may preclude those diluted shares from being sold?

Yes. Rule 144 governs resale of restricted stock. And it is not available to holders of restricted stock in delinquent SEC issuers.

However. holders of that kind of stock--or of convertible debt--can and do sue the issuers. The issuers often cooperate with the stock or note holders. The stock or note holder sues, and the parties arrange a settlement to be presented to the judge immediately. The judge signs off, and orders the issuance of stock pursuant to Section 3(a)(10) of the Securities Act of 1933.

The stock will be immediately free trading.