Atlantic Power & Infrastructure Corp. (AWSL)

[nlightn]

once again,..how are they legally going to do that ?

by definition Dividends are payments made by a corporation to its shareholders. it is the portion of corporate profits paid out to stockholders. when a corporation earns a profit, that money can be put to two uses: it can either be re-invested in the business (called retained earnings), or it can be paid to the shareholders as a dividend.

AWSL has made no profit so how can it pay a dividend to its shareholders if the accepted legal term for dividends are corporate profits paid out ?

does AWSL not have SEC guidelines to follow when increasing the amount of the companies shares ? YES ! are the rules of the market suspended for AWSL for this share increase procedure ? NO ! so,..how is AWSL management legally going to perform a dividend share ?

you wrote; "In view of the relatively small number of common shares currently outstanding,"

what they appear to be hoping for is if they increase the share amount that the market will respond and buy these increased share amount. but what if that doesn't happen. the shareholder then has shares that have gone down in value. ex; 10,000 shares priced a $3.75 before the dividend are now 13,000 shares now trading at 2.75 (which is the same dollar value) because of the adjustment and if the market does not respond and more selling occurs that dividend now becomes the shareholders nemesis.

and FYI;


ultimately, it is the stockholders of a company that have control of the number of authorized shares that may be issued by a company. once the maximum figure that is quoted in the Articles of Incorporation has been reached, the company may appeal to the stockholders for the right to issue more shares. if the company can convince enough of the current shareholders that issuing additional stock is in the best interests of both parties, then the privilege of issuing an agreed upon amount of authorized shares will be granted. if the shareholders do not believe that issuing more authorized shares is a good move, then the company will not be able to proceed.

this check and balance system of authorized shares helps to prevent the stock market from being flooded by shares that are ultimately worthless. if a company does not have the resources to back up the value of the stock, each authorized share would plummet in value. by committing the company to a maximum issued amount of authorized shares, first in the incorporation papers and later through the existing shareholder, a proper balance is maintained and the best interests of both the corporation and the shareholders are served.

so ,..how is AWSL management going to do this legally without squashing its shareholders rights ?

JMHO