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Friday, 07/08/2011 4:26:58 PM

Friday, July 08, 2011 4:26:58 PM

Post# of 98509
Good Speculations about the A/S usage



>> Good Speculations about the raised A/S usage & Cross-listing Info (posts contains multiple posters)


Authorized Shares Increase Possible Reasons:

The first reaction of many is the hated DILUTION scare.
But the Board of Directors may have other valid reasons to increase the Authorized number:

1.To use as collateral for capital financing, lines of credit &/or loan programs
2.To reserve shares for options/warrants.
3.To raise capital for expansion.
4.To expand the product line through acquisitions.
5.To establish strategic relationships with other companies.
6.To provide equity incentives to directors, officers, employees, consultants.
7.To create an employee stock ownership plan.
8.To protect the company from hostile takeover.
9.To use as a means of establishing subsidiaries based upon patents
10.To provide as restricted's for partners in JV programs.


The How and Why: " Cross listing " can lead to increased stock liquidity and a decrease in a cost of capital. Cross listing of shares is when a firm lists its equity shares on one or more foreign stock exchange in addition to its domestic exchange Examples include: American Deposit Receipt (ADR) European Depositary Receipt (EDR), International Depositary Receipt (IDR) and Global Registered Shares (GRS).
(Study)...finding suggests that the stock market expects the cross-listing to have a positive impact on firm value.Doidge, Karolyi, and Stulz (2004) [5] show that companies with a cross-listing in the U.S. have a higher valuation than non-cross-listed corporations, especially for firms with high growth opportunities..."


A share issued and registered in multiple markets around the world. Global registered shares represent the same class of shares. Also known as a "global share".These shares are issued in the U.S. and registered in different countries, thereby making them foreign securities. They provide shareholders across the globe with equal corporate rights. Global registered shares should not be confused with American depositary receipt (ADRs) or Global depositary receipts (GDRs), which are domestic securities representing a foreign (outside the U.S.) interest.


Meeting with Chinese Stock Market Officials, who invited Mr. Leonard due to his long and fruitful business relationship with the Chinese tractor industry. as seen in the 2011 Q1 QUARTERLY REPORT on Page 16 and in the GlobalTimes News Articles


Mark is sitting next to the President of Factory #2. On the other side of the President are three Government people here to see what Mark says about his tour of the new factory today and to discuss work that will be planned to make this factory to be the BEST accepted Tractor in the USA. This factory builds the MOST POPULAR tractor in China with Commercial Farmers. When cosmetic plans are completed, in about 8-12 months, it is felt by many that this will be the most sought after tractor in the USA/CANADA. This tractor was also the cornerstone tractor in Mark's first tractor company, Rhino. When re-introduced with MODERN cosmetics, it will again be the strongest and most reliable tractor sold anywhere.


> Mark sitting next to Gary Lynch (left) & Tim Nelson of Farm Boys Tractors Sitting on the opposite side of the Dinner table (right) (picture from there visit to China in May 2011)



>> The Basics Of O/S - A/S Shares & Float


$TYTN

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