Replies to post #15028 on Charlestowne Premium Beverages Inc. (FPWM)

[otterman]

Technically the AS is only 100mm because LB screwed up the filing to increase the AS for the financing deal. They are just trying to straighten that out.

I agree - where's the beef?

[dfh]

Welcome back Splavik. I'll try to make a long story short.
Back in August of 2004, LB had run the company into the ground. The company was in debt, the share price was 1 1/2 cents, the patent was in dispute (litigation with Snaper), and had no business integrity. PWTC was a dead horse.
The only way LB could obtain anymore financing was to step aside and let Corporate Strategies run the show. They installed BJ Walter as CEO and helped him attain financing through Cornell. At the time the issued shares were already up to the limit of authorized shares, 100 mil.
To move the company forward and obtain financing, they had to increase the authorized shares. They authorized 750 mil of which about 200 mil had to be set aside just for Cornell financing. Just recently it was found out that they received incorrect counsel advice on how to make the increase and that the authorization required shareholders approval. So now they have to back track and re-authorize that increase. Otherwise, all the shares issued after 100 mil would be void and would subject the company to much litigation.

Hope that helps,
Don