Southridge Enterprises Inc (SRGE)

[Jamesmobile]

A/S and O/S have two totally different meanings that some don't understand. An increase in A/S does not mean that the company is diluting at all. I have seen this many times before where a company increases the A/S. O/S refers to how many shares the company has issued and are shares that are being traded on the market, including restricted shares.

In my experience, companies can choose to issue some of their A/S to purchase assets or execute business growth incentives. In the case of SRGE, I can only see them issuing some of their A/S to purchase more gold property and expand operations. IMO, when a company issues some of their A/S and replaces it with actual assets, shareholders do not loose out and while more shares are on the market, it does not result in dilution. I personally prefer equity financing over debt financing when a company chooses to expand operations. When the buyout news comes out and the share price skyrockets, SRGE would be ready to explode and could use the higher share value to their advantage to rapidly acquire properties and expand gold mining operations.

What are your thoughts?