Replies to post #67582 on Auto Parts 4Less Group Inc (FLES)

[Justjoe1979]

No, The AS is the amount of shares they are authorized to issue. period. The OS is the number of shares they currently have issued. The AS was 20 Billion shares back in February, then it was reduced to 1 Billion shares in May after they got rid of some debt. Now that they have gotten rid of all of their toxic debt, they reduced it again to 15 Million shares. Currently 1.1M shares are in the OS and they can only ever grow the OS up to 15M shares in the AS unless they vote to increase the AS again. This can happen, but if they thought they needed more than that in the long term they would not have reduced it that much.

They had to keep 1 Billion shares authorized before to cover worst case scenario for conversions of toxic debt if needed by law. Now that they have no toxic debt they don't need that many authorized shares.

They still need some authorized shares in order to raise future capital. They are a public company after all. They must have a plan to raise the capital they need within that extremely small limit.

When most OTC stocks have an AS of 500M, 1B or more, this is a rarity in the OTC.

If you go to https://www.otcmarkets.com/stock/FLES/security you can see the AS and the OS. The PRE14C says they are lowering that 1 Billion share AS to 15 million shares.

https://www.investopedia.com/ask/answers/011315/what-difference-between-authorized-shares-and-outstanding-shares.asp#:~:text=Key%20Takeaways,available%20number%20of%20authorized%20shares.