Elkomike hello! Like Romans said the company could issue these additional shares and dilute then into the market. Any comapny can do this - and in fact most all of them do. Penny stocks in particular are notorius for this practice.....they issue like a billion shares or AS: Authorized Shares, then have say 250 million Outstanding Shares or OS which is how many possible shares they can dilute into the market Float. The Float is less then the OS because their are often Restricted Shares held by Insiders in the OS....so in this case say with OS 250 million for Company 'X', theyhave 100 million Restricted Shares which are not tradeable in the current Float - so then the everyday and tradeable float when the market is open for this company would be 150 million shares which is then the current Float.
BUT: the great thing with IROG is that the AS and OS ARE EXTREMLY SMALL....lol....to say the least. Even if the company diluted all the rest of the 18 million AS shares and added them imto the OS (then the AS and OS would be maxed out) to finance drilling......at the end of the day thats only 18 million shares. Now the stock price would go down BIG if they tried to do this because there is little to at times like today no liquidity - no trades. So worst case scenario here imo is that they try to dilute tanking the stock prices to a coupke cents - yes if your still holding you lose....but with this tiny share structure and potential gold-strike this year: Iknow I would BUYand buy big.
But this worst case scenario is imo doubtful, because of IROG's managements track record. Yes they did a Reverse Split last October, 20 for 1, but it is important to note that they DIDNT COME ANYWHERE NEAR DILUTING THE OS TO MAX AS OF 500 MIL AT THE TIME. The OS before the split was around 120 million. If IROG was your typical scammy Pink Sheet OTC stock, they would have dumped most of their AS of 500 million into the market before the RS, all the while coming out with 'pumping' PR's to create Buyers and liquidity to purchase all these shares to be dumped. Then the company would do the RS...and do the process again: DUMPING AS SHARES INTO THE OS AND FLOAT IS A COMPANY PRINTING MONEY THEMSELVES-!!! .....
So the good news is IROG did not do this. Neither do they come out with frequent and pumping PR's. ALSO important to note is as Poster Nobody3 mentioned last Fall: IROG also decreased their AS by the RS 20 for 1
split. Some companies only RS the OS....which is terrible to do......cause then they have that much more room to dilute i.e.: if IROG only RS'd the OS and still had an AS of 500 million - I and others here would shudder to think how much dilution lay ahead with the huge gulf between the 6 mil OS and 500 mil AS. -- But again, fortunately this is not the case.
So all this leads to one thing to me: with IROG's TINY AS and OS as compared to most every company out there, and the fact that they cant really dilute that many shares into market with such low liquidity - and if they do we all then will have a chance to buy around a penny again but this time with a lol 25 mil AS, and the fact that they just had a bullish preliminary Snowden Report that "strongly" suggets to start drilling - and that in the second most prolific gold zone on Earth that is home to all the worlds largest gold companies who not only have mined a couple hundred million oz's of AU here the last 30 years - but are STILL discovering NEW GOLD TODAY.......:
IROG could be a mammoth, massive stock later this year 2012 when we get the drilling results back.
Hope all this helps, sorry to go on so long....but imo a stock like this does not come around very often!
I appreciate your ground zero findings, as well as your posts ElkoMike!
DiamondFire!
