Canna Corp (fka CNCC)

[CashBowski]

Seems OS is to increase even more.


Now that GoilD has found material information that hasn’t been disclosed to SHs — whether they intentionally made the record date (9/12/18) before they filed the information statement yesterday to evade having to disclose that they’ve more than tripled the Authorized shares on 9/24/18 — regardless, they need to properly file this in a 8-k ASAP.

The AS is 60% issued — if they need to issue more common and/or convertible shares, especially toxic and/or in the form of series C shares since those were designated for debt, then each of those convert to $1.00 + 12% interest, so, they’ll need to increase the Authorized shares as the mechanics of conversion dictate for them to ensure they have enough in reserve, and it’s common practice with debt holders for the company to ensure that the TA has at least double the conversion shares locked up at all times in reserve for diluters. Plus, besides the convertible shares, they have to have enough Authorized available to preserve common structure.

There’s only one reason why a company (within their first 9 months of going public with zero revenues) would increase their AS — and that’s simply because they’re issuing shares faster than they can preserve the current share structure, hence at some point exponentially diluting shareholder value.

Reservation of Stock Issuable Upon Conversion.
Solely for the purpose of effecting the conversion of the shares of the Series C Preferred Stock, the Corporation shall at all times, subject to the conditions described in Section B(3)(d)(i), reserve and keep available out of its authorized but unissued shares of Common Stock, such number of shares of its Common Stock as shall from time to time be sufficient to effect the conversion of all outstanding shares of the Series C Preferred Stock; and if at any time the number of authorized but unissued shares of Common Stock shall not be sufficient to effect the conversion of all then outstanding shares of the Series C Preferred Stock, the Corporation will take such corporate action as, in the opinion of counsel to the Corporation, may be necessary and authorized to increase its authorized but unissued shares of Common Stock to such number of shares of Common Stock to such number of shares as shall be sufficient for such purposes.