Jiangbo Pharmaceuticals, Inc.(fka JGBO)

[carl_52fl]

Dear "Understand the Terms":
I believe you are interpreting this statement incorrectly. Before the reverse merger, GTEC was authorized up to 200M shares, although the outstanding shares and options totalled approx 100M.
The 6M shares of Series B Preferred stock cannot convert to its 300M common shares until two things happen:
1) The new board approves to increase its authorized shares to 600M and
2) The $30M equity financing is completed.

The bottom line is
US shareholders have 100M total shares including both outstanding shares and options,
China shareholders will have 300M shares after the two items above are fulfilled.
The total authorized share number will be 600M
Some of the remaining 200M shares will be used for the $30M equity financing, hopefully as few as possible.
Total outstanding shares will be 400M + those used in financing.
Remaining authorized shares can be used in the future for acquisition or more equity financing.

My guess is this will all happen before any proposed 1:7 reverse stock split occurs and the new GTEC goes to a bigger exchange.
Carl