Replies to post #946 on Red Cat Holdings Inc (RCAT)

[Schmedrickk]

This pretty much says it right here....

The Board of Directors recommends that the shareholders vote for approval and ratification of the amendment of the Articles of Incorporation to authorize 100,000,000 preferred shares with further terms and classes to be designated by the Board of Directors prior to the issuance of such shares.

It is the belief that the increase in authorized will increase the opportunities for fundraising.

Authorization of Preferred Stock means Preferred Stock can be issued by action of the Board of Directors and without further approval of stockholders. Preferred Stock can be issued or committed for any corporate purpose, including without limitation financings, as compensation, or in acquisitions. Any such issuance will have a dilutive effect on current shareholders

The availability of additional shares can have an anti-takeover effect because shares can be issued to dilute the ownership of a potential acquirer.

[PeaceMaker]

Issuance of shares,(common or preferred) afford the company greater flexibility to fund merger/acquire opportunities and is commonplace in the MKT. More shares means dilution of course. Other than that just the Annual Meeting with election of Dir., etc...