Replies to post #29613 on AimRite Holdings Corp (AIMH)

[king oil]

It’s in the quarterly report. Fact. Do your DD.

[BeamMeUpScotty]

Here’s the reason why Authorised Share counts are increased in the run up to a reverse merger.

Firstly, FINRA won’t allow any company to complete a reverse merger unless they are current information on OTC Markets.

Secondly, it’s a stipulation of FINRA for all reverse mergers in the OTC at least, that the Authorised Share count is increased to cover the value of the whole deal, even if the company has clearly stated that it will not be financing the merger/acquisition by issuing shares.

So the bigger the increase, the larger the value of the deal.