Telvue Corp. (fka TEVE)

[Hockmir]

In addition for purposes of consummating the Debt Conversion Agreement, the Board of Directors also believes that it is in the best interests of TelVue and its stockholders to increase the number of authorized shares of Common Stock in order to provide additional shares that could be issued for raising of additional equity capital or other financing activities, stock dividends or the exercise of stock options and to provide additional shares that could be issued in business combinations and to better position the Company for future trading should a transaction be entered into and completed. Approval of the proposal would also permit additional shares of stock to be issued without the expense and delay of a stockholders’ meeting, which could delay or prevent the consummation of a transaction

My own thought is that the reasoning behind the stock reorganization is being telegraphed by the passage I have accented above. They are stating that a possible need for these actions is to position the company for BUSINESS COMBINATIONS. (Their words, not mine).

Now, why would someone need extra shares around if they intended to be taken over? They wouldn't. They would need extra shares around to buy-out or to provide replacement shares to the holders of other companies which they are assuming control of. Happens all the time. I have at least one stock in the middle of an M&A right now. To my advantage.

SO, instead of thinking of the stock as a victim, think of it as being positioned by Jesse and Gerry to start eating the competitors to create the big kid on the block in this market sector.