Metal Arts Company (MTRT)

[FrankF]

Outstanding post! Perfect example of A/S increase for structuring a merger NOT translating to O/S:

Concerned about AS increase and preferred issuance by Medium? Look at how TSN*P/HMB*L merger SS was structured during that merger process:

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On December 3, 2020, HUMBL, LLC (“HUMBL LLC”) merged into the Company in what is accounted for as a reverse merger. Under the terms of the Merger Agreement, HUMBL LLC exchanged 100% of their membership interests for 552,029 shares of newly created Series B Preferred Stock. The Series B Preferred shares were issued to the respective members of HUMBL LLC following the approval by FINRA of the one-for-four reverse stock split of the common shares and the
increase in the authorized common shares to 7,450,000,000 shares. The FINRA approval for both the increase in the authorized common shares and reverse stock split occurred on February 26, 2021. To assume control of the Company, the former CEO, Henry Boucher assigned his 7,000,000 shares of Series A Preferred Stock to Brian Foote, the President and CEO of HUMBL LLC for a $40,000 note payable. The Series A Preferred Stock is not convertible into common stock, however, it has voting rights of 10,000 votes per 1 share of stock. After the reverse merger was completed, HUMBL LLC
ceased doing business, and all operations were conducted under Tesoro Enterprises, Inc. which later changed its name to HUMBL, Inc. (“HUMBL” or the “Company”).
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https://www.otcmarkets.com/otcapi/company/financial-report/278615/content

The TSN*P OS was 4.5 billion as of Dec 2019 before the merger. There was a rs during the merger 1 to 4, hence the OS was supposed to be reduced to 1.1 billion. But the current OS is only at 910 million as per OTC.

https://www.otcmarkets.com/otcapi/company/financial-report/261157/content

https://www.otcmarkets.com/stock/HMBL/security

The HMB*L AS remains at 7.45 billion and the current OS at 910 million. The increase AS has not increased the OS. In fact it appears the OS came down after the merger (1.1 billion vs 910 million as stated above).

The AS increase may not translate into OS increase any time soon. The AS may be increased to accommodate future acquisitions, to implement forward split, to maintain controlling interest via preferred shares.

Better issuance of preferred shares than commons as they're anti-dilution until conversions take place, which may not be for a while.