SurgLine International Inc (SGLN)

[MJA745]

The antidilution clause is not something CNUV wrote to protect investors, its something Surgline wrote to protect themselves. They had agreed a certain number of shares to settle, but included a clause that if CNUV diluted the stock before closing, then they had to give Surgline more shares to make up for the dilution. CNUV increased the outstanding from 590 million to over 1 billion before the close That is why the 8k says CNUV gave Surgline x number of shares, and then gave them more shares in satisfaction of the antidilution clause. Then on top of it, they issued another 4 billion after the close.