It all DEPENDS on what the Shares are being use for.
It is not like the company increase the shares and starting selling them like hot cakes.
The increase in shares and possible reverse split has legitimate and logical reasons for doing so.
Second, many of the questions submitted had to do with a recent filing we made with the SEC. I would like to provide some additional insight as to the purpose of this filing and what it could mean for the future of our company. The filing was a standard notice of two proposed corporate actions: increasing the number of shares authorized by the Company and providing authority to the Board of Directors for a potential reverse split of our shares. Regarding the first point, it is important to note that authorized and outstanding shares are different numbers. Authorized refers to the total possible shares that could be issued, and outstanding refers to the total number of shares the company has issued. Increasing the number of authorized shares did not automatically increase the number of outstanding. We increased the number of authorized shares to meet future obligations to issue shares, be able to issue shares pursuant to a future financing and to allow us to have a sufficient number of shares to make acquisitions or provide equity incentives.
Regarding the option to do a reverse split, I want to highlight that this filing gave authorization to our Board of Directors to do a reverse split in the future; it did not specify how or when we would do this. We have yet to decide if or when we would need to do this; however, again, including it in the filing now gave us yet another tool to utilize to move to a higher exchange in the future. It did not set an actual ratio that we would be held to, only a maximum allowable. We believe that having our company listed on other, more prominent exchanges, will ultimately lead to larger institutional interest and long-term shareholder value. It was imperative that we accomplish this now, while we plan for our future.
