Cartel Blue Inc (CRTL)

[knight247]

The Company’s Articles of Incorporation give the Company’s Board of Directors blank check authority to issue the Company’s Common Stock, which in certain circumstances could be used to delay, defer or prevent a change in control of the issuer. At the date hereof, all 500,000,000 authorized shares of the Company’s Common Stock are designated as Common Stock, of which 375,152,538 shares are issued and outstanding.
Item 6 The number of shares or total amount of the securities outstanding for each class of securities authorized.




Definition of 'Blank Check Preferred Stock'
A method companies use to simplify the process of creating new classes of preferred stock to raise additional funds from sophisticated investors without obtaining separate shareholder approval.





Investopedia explains 'Blank Check Preferred Stock'
To do this a company must amend its articles of incorporation to create a class of un-issued shares of preferred stock whose terms and conditions may be expressly determined by the company's board of directors.

This kind of stock can also be created by a public company as a takeover defense in the event of a hostile bid for the company (poison pill).