Aquagold International Inc (AQUI)

[Lochan]

I don't think we can say with certainty what was the exact purpose of increasing the authorized shares. There are probably many factors that would justify their decision to do so. In general, companies need to have some breathing space between the number of shares authorized and shares outstanding.

Of course, there is no dilution until authorized shares become issued and outstanding, and it is true that once issued, they can be bought back by the company and even retired.

With a Company like Aquagold, based on the proven integrity of its management team, we can safely say this is not a typical pinksheet move to cheat shareholders out of their money. For all we know, they could be negotiating the acquisition of another business in exchange for AQUI shares. Or, as you said, they could be acquiring short-term funds
to finance operations until payments start rolling in from China. What we know is that they are doing what they have to do to accelerate growth of the business.

If every time someone sees an increase in authorized shares they panic, they should not be in the stock market. The capital structure of every company is dynamic, not static, and a growing company has to make use of all of the resources it has to stay ahead of its competition and take advantage of business opportunities when they arise.