So when they are doing their MOP UP operation - what do you think they will be doing with all those shares owned by Golden Gate that you say they have nothing to do with???
Common Stock
As of the Record Date, there were 5 billion shares of Common Stock authorized with a stated value of $.0001 per share, of which approximately 920,558,174 are issued and outstanding, with 4,079,441,826 shares authorized but not issued. Of the 920,558,174 shares issued and outstanding 780,678,923 shares are held in an escrow account for the benefit of Golden Gate Investors, Inc. These shares were issued as settlement on convertible debentures and as part of a stock purchase agreement. While held in escrow these shares are voted by the Company’s Board of Directors. Each holder of the Company’s Common Stock is entitled to one vote for each share held of record on all matters submitted to the vote of stockholders, including the election of directors. All voting is non-cumulative, which means that the holder of fifty percent (50%) plus one share of the shares voting for the election of the directors can elect all the directors. The holders of Common Stock are entitled to receive pro rata dividends, when and as declared by the Board of Directors in its discretion, out of funds legally available therefore, but only if all dividends on the Preferred Stock have been paid in accordance with the terms of such Preferred Stock and there exists no deficiency in any sinking fund for the Preferred Stock.
Also I wouldn't worry too much about the voting - if you read the 14k I couldn't imagine the Company's BOD doing anything other than voting for the withdrawal. It will benefit them greatly - although I question the benefit to the shareholders.
AI
