Replies to post #130360 on Medical Marijuana Inc (MJNA)

[Det_Robert_Thorne]

You're referring to Outstanding Shares, Shell Man

I think by "publicly given", you mean Outstanding Shares.

As to why the return to 5B shares is important, is that it gives MJNA the "headroom" to issue shares to the portfolio companies in order to pay for expansion without having to go to the shareholders for a vote to increase the number of AS.

BTW, if they were a fully-reporting-with-the-SEC company, they would have to file forms any time they increased the outstanding shares, or an S-3 filing to offer shares on the open market to raise cash, which could then be distributed to the portfolios and subsidiaries.

Yes, if the Authorized Shares reverts to 5B, the company can change it, but they have to do so with a proper shareholder vote. Of course, insiders might hold enough shares to make a quorum (proper number of voting shares to make the vote count) and win the vote without coming to the outside shareholders, but that's okay, as the proper procedure would have been followed.