The pre-14C gives 2 reasons for the need to increase the A/S:
Quote:
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As of July 23, 2013 the Company has only 1,700,951 authorized but unissued common shares. As such, the Board has determined that the common shares authorized by the Company’s Certificate of Incorporation be increased in order that:
(a) the Company shall be able to issue common shares to Min pursuant to the Agreement
(b) The Company shall have a sufficient number of common shares authorized in order that it may offer common shares as consideration for the purchase and/or licensing of intellectual property. So what does the above all mean? It means that BMSN will need plenty more common shares than what they have available in order to fully compensate Dr. Min. To illustrate the point, if you used today's pps ($0.0038), all of the compensation above would total over 552 MILLION common shares! The good thing about this is it is all performance based. If the Min IP does not get FDA approval, then BMSN is not on the hook for any of the above payouts. Obviously, as long shareholders, it is in our best interest that Dr. Min gets a boat load of shares, because that means the Min IP is well on it's way to potentially making Billions of dollars and lots of profits for shareholders. Also, as these milestones are completed, the pps will be a WHOLE LOT HIGHER than what it is today, therefore the number of shares required to compensate Dr. Min will be SIGNIFICANTLY LESS than the 552 million it would take at today's ppsThanks AIRRIC !
