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Re: Sunnybank post# 74587

Thursday, 01/12/2012 3:06:09 PM

Thursday, January 12, 2012 3:06:09 PM

Post# of 98534
I'm not sure how you figure that. If a portion of the A/S is in the O/S and the O/S gets split, a portion of the A/S gets split as well. Further reading, though, has led me to believe that A/S may not be effected. This is the standard statement companies have put out re R/S:

Effect of Reverse Stock Split on Authorized Shares of Common Stock

A reverse stock split, if implemented, would not change the number of authorized shares of our common stock, which is 45,000,000 under our Articles of Incorporation. Therefore, because the number of issued and outstanding shares of our common stock would decrease, the number of common shares remaining available for issuance would increase.

These additional shares of common stock would be available for issuance from time to time for corporate purposes such as raising additional capital, acquisitions of companies or assets and sales of stock or securities convertible into common stock. We believe that the availability of the additional shares will provide us with the flexibility to meet business needs as they arise, to take advantage of favorable opportunities and to respond to a changing corporate environment.

The increased reserve of shares available for issuance may be used to facilitate public or private financings. If required operating funds cannot be generated by operations, we may need to, among other things, issue and sell unregistered common stock, or securities convertible into common stock, in private transactions. Such transactions might not be available on terms favorable to us, or at all. We may sell common stock at prices less than the public trading price of the common stock at the time, and we may grant additional contractual rights to purchase not available to other holders of common stock, such as warrants to purchase additional shares of common stock or anti-dilution protections.


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