Capstone Companies Inc (CAPC)

[Salve Lucrum]

The shares would not show as "Outstanding"

until they are issued.(IMO) This is the same situation enjoyed by convertible debentures.

However both these shares and the associated warrants do count against the A/S, Do the math and you will see that the A/S would be (or is) oversubscribed.

The need to increase the A/S is imminent putting Howard between a rock and a hard place. The company needs the flexibility of an increased stock base but Howard's majority interest would be negatively affected by the move.

I believe Howard is praying that the revenues from the new lines along with the PP will be sufficiently immediate to stave off the need for additional funding, which would automatically force an increase in the A/S.

Frankly, I do not see how they are going to come up with the scratch involved in introducing the new products without getting a bridge loan, or some other financing which would require an equity offset. Factoring, or like methods of using anticipated revenues, are quite detrimental to the bottom line.

JMHO!