Replies to post #11779 on Tonix Pharmaceuticals Holding Corp (TNXP)

[timberwolf7]

Thanks for the heads up. Now it raises a pretty big question cause the company
says they have a lot of cash on hand, and just upped their allowance for a share buyback.
So WHY would they authorize more shares.. Interesting because I have said for a while,
only having 11 Mil shares in the float is pretty frigging small when a company is on the verge
of commencing sales/revenues/profits. And its likely to give the big boys on wall street
a reason to want shares. So what are they up to? Hmmm

https://fastercapital.com/content/Stock-split--Authorized-Stock-and-Stock-Split--A-Comprehensive-Guide.html

When a company decides to split its stock, there are several important factors to consider. One of the most significant is the role of authorized stock in the process. Authorized stock refers to the maximum number of shares a company is allowed to issue, which is determined by its charter or articles of incorporation. In this section, we will explore the various ways authorized stock can impact a stock split and what companies should consider when making decisions about this important factor.

1. Understanding authorized stock

Before delving into the role of authorized stock in a stock split, it is essential to understand what it represents. authorized stock is the maximum number of shares a company can issue, as specified in its charter or articles of incorporation. This number is not always equal to the number of shares the company has actually issued or outstanding. Instead, it provides a cap on how many shares can be issued in the future.

2. impact of authorized stock on stock split

When a company decides to split its stock, it must consider how the split will affect its authorized stock. If the split will cause the number of outstanding shares to exceed the authorized stock limit, the company will need to increase its authorized stock. This can be done through a vote of the company's board of directors and shareholders.

3. Options for increasing authorized stock

There are several ways a company can increase its authorized stock. One option is to amend its charter or articles of incorporation to increase the authorized stock limit. Another option is to issue new shares through a secondary offering or private placement. However, these options can be costly and time-consuming, so companies should carefully consider the best approach for their needs.

4. Benefits of increasing authorized stock

Increasing authorized stock can provide several benefits for a company. For example, it allows the company to issue additional shares in the future, which can be used for stock splits, mergers and acquisitions, and other strategic initiatives. It also provides flexibility in case the company needs to raise additional capital quickly.

[timberwolf7]

Does a forward split affect the number of authorized shares?
A forward split does not affect the percentage ownership held by each shareholder, just the number of shares. It also doesn't affect the number of authorized shares unless the forward split will require more shares than are already authorized. That means the company must petition to raise the number of authorized shares.