VirTra Inc (VTSI)

[Ellington]

"How is this decision 'opposed to shareholder interests'?"

The use of shares for dilution would be opposed to shareholder interests, yes? The use of shares for that purpose is possible only if the authorized increases.

Will the firm say that they will use the shares for dilution? No, they will say their intent is to use it for deals that increase shareholder value. Does every firm claiming the best intentions fulfill the best intentions?

No, and that's the point. Why provide a blank check?

Let's put it another way. If management had asked for 400 billion shares, would you say, "How is this opposed to shareholder interests"?

It is odd to say that a huge increase in authorized is probably fine, even though the expected, accompanying decision (is a specific deal good or bad?) -- a decision that was going to be in our hands -- will be out of our hands, with the financing decision divorced from the use decision.

Wouldn't you rather be included in the decision to merge?