Replies to post #41978 on Coretec Group Inc (CRTG)

[iamthe walrus]

8 K The Preferred Stock is not expected to: require the payment of any dividends; include any operational covenants; or require the Company to redeem the Series C Preferred Stock

8K . In addition, it is expected that all outstanding Series C Preferred Stock will be automatically converted after a mandatory conversion event, which will be set forth in a certificate of designation that the Company would file with the Secretary of the State of Oklahoma at or before the closing of the Exchange.

From preferred stock article ..7.2.1 Redemption features
Preferred stock may or may not provide for redemption. Perpetual preferred stock does not have a redemption feature. Redeemable preferred stock may be mandatorily or contingently redeemable. The typical accounting classification for each of these types of preferred stock by the issuer is summarized in Figure FG 7-2.

https://viewpoint.pwc.com/dt/us/en/pwc/accounting_guides/financing_transactio/financing_transactio_US/chapter_7_preferred__US/72_characteristics_o_US.html

Im guessing we will have to wait to see it preferred stock has many options the link above gives the options for preferred stock

[Quikshft]

I don't know....

Quikshft - Coretec currently has about 285 million shares of common stock issued. In the share exchange agreement it looks like 705,561,076 more common shares will be issued. The 10 million series C preferred stock converts to another 1.5 billion shares. With an approved OS of 1.5 billion, how is this possible?

ChatGPT
Thank you for providing the additional context. Based on the information you've provided, it appears that the issuance of shares outlined in the share exchange agreement would indeed exceed Coretec's authorized share count of 1.5 billion shares.

Here's a breakdown of the potential share issuances:

Common Stock: The share exchange agreement mentions the issuance of 705,561,076 shares of Coretec's common stock to the members of Core Optics.

Series C Preferred Stock: Additionally, the agreement states the issuance of 10 million shares of Series C Convertible Preferred Stock, which are convertible into another 1.5 billion shares of common stock.

Adding these two together:

705,561,076 (Common Stock) + 1,500,000,000 (Common Stock from Series C Preferred Stock) = 2,205,561,076

This total exceeds Coretec's authorized share count of 1.5 billion shares.

If Coretec wishes to proceed with these issuances, it would likely need to take steps to increase its authorized share count. This typically involves obtaining approval from its shareholders to amend its articles of incorporation or similar corporate governance documents to authorize the issuance of additional shares.