What you may also conclude from the recent 8K is that Smithline would not agree to the loan amendment unless Moro could demonstrate that he could raise the funds to finance the public offering.
I now agree with the bocx that it would be suicidal to not approve the authorized shares. Smithline is now in the drivers seat and dealing tough. If the shares are not authorized, the big hammer could fall. Just something to keep in mind when it comes vote time.