Let’s break down what’s happening with these numbers. Here's what the data shows: Outstanding Shares (O/S) increased by 41,482,620 shares. Unrestricted Shares also increased by 41,482,620 shares. Restricted Shares remained the same (about 500,847,878)
The increase in outstanding shares through new unrestricted shares is a form of dilution, as it adds to the total shares in circulation, reducing the value of existing shares. Since the company is not SEC-registered, it can't issue shares that are immediately tradable on the open market, like with a Registered Direct Offering (RDO) or At-the-Market (ATM) offering. These require SEC registration for immediate resale.
Instead, the company can raise funds through private offerings to accredited investors, but these shares are typically restricted and cannot be traded for 6-12 months under SEC Rule 144. As the company isn’t registered, newly issued shares can’t be sold right away, preventing immediate dilution. In the case of Trillium Partners LP, its newly acquired shares would be restricted for now, but after the holding period, they could be sold on the open market.
Regarding the increase in Held at DTC (27,135,121), it’s likely that some unrestricted shares were issued as directly registered shares and held by investors, not through the DTC. Additionally, some shares might still be in the process of being transferred to the DTC, which explains why the DTC count didn’t match the total increase in unrestricted shares.
Authorized Shares 4,000,000,000 11/01/2024 ---------------10/16/2024 Outstanding Shares 806,897,776--------------765,415,156--increased 41,482,620 Restricted 500,847,878-------------500,847,878------------unchanged Unrestricted 306,049,898------------264,567,278---increased 41,482,620 Held at DTC 234,400,190-----------207,265,070---Increased 27,135,121