You are correct. It isn't considered a split. This is an increase in the number of shares authorized. It causes dilution of shareholder value. Just like the US dollar dropping in price. Meaning, your dollars are worth less, so they have less purchasing power.
The thing is, it all depends on how they use the shares authorized. If they hand them out like candy to company officers/employees, etc. well, then you're not getting anything in return for that. If they use the shares as a way to acquire other entities (another company), then they are exchanging company shares for shares of another company.
The change has already taken place. The shares authorized have gone from around 80,000,000 to 300,000,000. Done deal. The shares, however, are just sitting there doing nothing. I noticed that they did issue some shares to Jehu Hand (I believe). He is corporate counsel for Wellstone, and also a relative of those involved in running the company. I think it was some 1.5 million shares. The exact information is in one of the SEC filings. Given the legal work that the firm has done, I suppose that is fair compensation at this point in time.
I simply hope they do not do anything to destroy shareholder value, as this is a delicate time. I'd also like to hear more news coming from them. I'm sure things are going on, but they aren't discussing them with the public.
Cheers
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