Sierra Resource Group Inc. (fka SIRG)

[thizsukz]

The additional shares at this point in time is simply to satisfy the contractual agreements with Asher. As stated before if they were to convert at this point would convert to approximately 150million shares. The notes require that the company " maintain a reserve of authorized but unissued Class A Common Stock (the “Reserve Shares”) in an amount 5-times the number of shares into which the outstanding debt" or approximately 750million shares, combine this with the 202million outstanding shares is just under 1billion shares required. They also anticipate that the additional shares would be needed for future financing needs. There is no mention of near term financing.

It would appear that there has been some more conversion done (likely by Asher) as there are now 202million outstanding up from 172million as of the latest 10Q

One thing that is interesting to me is the 1million preferred shares that are outstanding. As of the most recent 10Q there were no preferred shares outstanding.