Read the new preferreds. They need to increase the commons (OS) to that amount so that the preferred shares can be converted so the outstanding needs to be that high. I think you need to read man as well.
"The Corporation shall have authority to issue fifty billion two million and one hundred thousand (50,002,100,000) shares of capital stock, of which (i) forty billion (40,000,000,000) shares shall be registered shares of common stock"
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