American Green Inc (ERBB)

[neilbolton]

During this transition, the stock price falls back to almost nothing. Very importantly in this case, the authorized shares are seldom rolled back in tandem with the outstanding shares leaving a majority of shares still authorized but, as yet, unissued. A formula that spells trouble for the old shareholders.

Agan he, as do several posters here, refuses to acknowledge that he can increase the authorized at any time without even requesting the consent of or informing outside shareholders. He, and the others, talk as if the current authorized is somehow set in stone and cannot be changed.

If he was genuinely concerned about the fear of dilution, he should state exactly what the preference shares entitle and he should put on record that he will not allow the preference shares to be issued or the authorized of the ordinaries increased without the consent of a majority of "outside" shareholders.