CyberKey Solutions fka CKYS

[CheezyTang]

For those invested in....

penny stocks/pink sheets for some time have seen an increase in Authorized Shares to mean MAINLY that the company plans to use these shares for funding, ie: raise capital for the company at the expense of the shareholders. The company uses this money to pay overhead, pay themselves, for acquisitions, convert debt to shares. Furthermore, Private investment firms will give the company hundreds of thousands of dollars in exchange for common shares that can be traded immediately, as well as warrants that can be converted into a larger amount of common stock at a given date, at a given minimum price. This information is required to be submitted as an SEC filing when it is a company listed on the OTCBB or higher, like nasdaq or bigboard....but not pinksheets(am i wrong?)

Death spiral financing
From Wikipedia, the free encyclopedia

Death spiral financing occurs when a small company, in desperate need of money, takes an investor's cash, but with a caveat. That investor, at the time of their choosing, can claim some of the company's stock, usually at a fraction of the market value. That seller can then start claiming and selling the stock short. Because the company is small, this depresses the value of the stock, thus allowing the investor to claim and sell more stock.

The options to buy stock are known as "toxic" or "death spiral" convertibles.

The fact that the company increased their AS means that they plan to use more than what was available for some reason. IMO, there is absolutely no good reason to do this, expecially when they have actual products to sell. The question is, what do they need the cash/shares for?

Dan