VLRN 10-Q Share Structure Note:
Common Stock
The Company has authorized 10,000,000,000 shares of $0.001 par common stock. As of February 28, 2009 and 2008, 312,905,360 and 100,000,000 shares respectively were issued and outstanding (See Note 8, 11 and 12).
In accordance with the debenture agreement (See Note 8), the Company is required to, during the period the conversion rights exists, reserve from its authorized and unissued common stock a sufficient number of shares to provide for the issuance of common stock upon the full conversion of the debentures.
During June 2008, the Company reached a settlement with Richard Smith of Falls Church, Virginia. Smith claimed that he had used his shares to pay for certain promotional services rendered to the Company by Novak Capital of Seattle Washington. As a result, during June 2008, the Company issued 6,000,000 restricted shares to Mr. Smith to settle his claim.
During June 2008, the Company’s Board approved the issuance of 6,677,556 restricted shares to Dejoya Griffith, as settlement of $48,000 in accounts payable related to the preparing of schedules for journal entries related to FAS 133 accounting standards for derivative instruments.
During July 2008 the company issued 5,000,000 shares as partial payment of $11,000 towards the outstanding balance owed to Gary Ackles (See Note 12).
During November 2006, the Company accepted a loan from Mr. Peter Matousak for $15,000. The proceeds were paid directly to NewsUSA, a North American news media service, on the Company’s behalf representing a payment on the Company’s media contract. In the agreement with Mr. Matousak the Company Board of Directors approved to issue Matousak 500,000 shares of Company stock with piggy back registration rights and to be issued pending shareholders approval of the proxy to increase the Company’s authorized shares and change the Company name. During September 2008, the Company issued these restricted shares to Mr. Matousak as per the agreement.
During the period of this report the Company’s Board of Directors approved the issuance of common shares for debt per agreements with investors (See Note 8).
