Franchise Capital Rebounds After Dilution Fears
Read the part in bold.
Thomas J. Catino
1/08/2007 6:04 PM EST
For shareholders just arriving home from work, checking their portfolio balances and stock holdings, Franchise Capital would appear to have had a poor day. The stock was lower by $.006, or 12.24%, to finish the day at $.043. However, the close was no indication whatsoever of the entire trading day. Prior to the one o'clock hour, Franchise Capital shares were suffering a horrendous decline, plummeting to a low of $.021. The stock was in a total freefall and investors sold in droves after the Nevada Secretary of State website revealed that the company had filed on January 4 to increase authorized shares to a total of five billion. An investor relations spokesperson told Ant & Sons that the share structure was never changed, the five billion authorized shares had been in the articles of incorporation from previous management, and such a change would have needed shareholder approval. An 8-K filing was being worked on to update the investment community on the situation. What's most important is that shareholders can rest assured that the outstanding shares have remained that same at 72 million.
Looking ahead: Franchise Capital entered into a preliminary agreement to acquire the issued and outstanding shares of Aero Exhaust and expects to announce a definitive agreement with Aero Exhaust by mid-January 2007.
AI
