STL Marketing Group, Inc. (fka STLK)

[e-ore]

It's very common at this level. In this economic climate it's hard to borrow money on any favorable terms. The only way to get it is to sell shares. If you've maxed out the authorized shares you either increase the authorized shares or do a reverse split on the outstanding but not the authorized. This gives "breathing room" to sell more. Plus there is the convertible bond isuue. If the company can't pay the bond holders off, then the bondholders convert their bonds into common shares. There has to be enough available shares for that to happen. At least they reduced the A/S a little; in most cases that doesn't happen.