Warning! Dilution ahead! Warning!
CRPZ filed a schedual 14C on June 6th, 2011 indicating an increase the authorized shares of common stock to 600,000,000 shares. See the excerpt below.
This stock is going DOWN!!!! Dilution, Dilution, Dilution!!!!
AMENDMENT TO OUR CORPORATION'S ARTICLES
Our Articles of Incorporation (the "Articles") currently authorize the issuance of 100,000,000 shares of common stock, $0.00001 par value, and 100,000,000 of preferred stock. On June 6, 2011 our Board of Directors approved, subject to receiving the approval of a majority of the shareholders of our common stock, an amendment to our Articles to increase the authorized shares of common stock to 600,000,000 shares for which the Board of Directors may fix and determine the designations, rights, preferences or other variations of each class or series within each class of the shares of preferred stock.
The purpose of the Amendment is to ensure that shares of our common stock are available for issuance to investors who agree to provide us with the funding it requires to continue its operations, and/or to persons in connection with potential acquisition transactions, warrant or option exercises and other transactions under which our Board of Directors may determine is in the best interest of our corporation and our stockholder to issue shares of common stock. As of the date of this Information Statement, the Company has not identified any potential investors and has not entered into any agreements relating to any potential investment in the Company or otherwise pursuant to which the Company will issue shares of common stock.
The Amendment will not have any immediate effect on the rights of existing stockholders, but may have a dilutive effect on the Company’s existing stockholders if additional shares are issued.
We do not have any provisions in our Articles, by laws, or employment or credit agreements to which we are party that have anti-takeover consequences. We do not currently have any plans to adopt anti-takeover provisions or enter into any arrangements or understandings that would have anti-takeover consequences. In certain circumstances, our management may issue additional shares to resist a third party takeover transaction, even if done at an above market premium and favoured by a majority of independent shareholders.
Shareholder approval for the Amendment to our Articles was obtained by written consent of eight (8) shareholders owning 30,342,183 shares of our common stock, which represented 54.31% on June 6, 2011. The increase in our authorized capital will not become effective until not less than twenty (20) days after this Information Statement is first mailed to shareholders of our common stock and until the appropriate filings have been made with the Nevada Secretary of State.
