Unique Logistics International Inc (UNQL)

[Almost A Myth]

Good question. In a hostile takeover situation, an outside entity attempts to accumulate at least 51% of the target company's stock.

If there is enough stock freely trading on the open market to allow the entity to accumulate that 51%, they can essentially assume control of the company as soon as they own a majority of the shares.

Raising the authorized shares, but not the outstanding shares, creates a cushion that protects the company because it changes the ratio of available shares.

Now the outside entity has to accumulate 51% of the newly increased share count. With a large chunk of shares off the table, and tucked away in the authorized share count, it makes it more difficult, perhaps impossible for the outside entity to accumulate the required 51%.

How would the additional shares be used against a takeover bid..???