Resonate Blends Inc (KOAN)

[RMD1]

Reserved shares are authorized shares that are set aside for issuance in the future. Most common are the stock option plans. The reserved shares are part of the total number of AUTHORIZED SHARES, but the corporation may not issue them, except under the stock option plan or for a third party. This is when a corporation issues a warrant to a third party to purchase stock. If such warrant holder exercises the warrant, the corporation then needs to have enough shares reserved to issue to the warrant holder.

Once the corporation raises money by issuing preferred stock, a certain number of authorized shares must be reserved for the conversion of the preferred stock into common stock. I was registered with the SEC for 13 years. I am right you are wrong.