Vote it down! What are the new preferred shares? are they convertible into another billion common shares or more? why are any new shares needed? there are some 300 million available shares under the current authorization. post split at 50:1 this is 6 million shares they can use to raise money. if the science is good the price ps should be at least $8-10 post split. Gary wants the shares for millions in new options. this is crazy. he is asking for a 50% increase in shares plus 50 million pref. Shares. We are talking 2billion or more shares. Vote it down! current loyal shareholders getting screwed again.
"The Company’s Certificate of Incorporation, as amended from time to time, currently also authorizes the issuance of fifty million shares of preferred stock, and as of August 23, 2013 there were l shares of Series A-1 redeemable preferred stock issued and outstanding, l shares of Series B preferred stock issued and outstanding and l shares of Series C preferred stock issued and outstanding. The proposed amendment to the certificate of incorporation, as amended, would not change the authorized number of shares of preferred stock."
The preferred shares will be the first thing to be sold to raise capital, not common as typically professional investors want maximum upside. For this reason, the authorization of preferred with the authorization of 1 billion common to accomodate the reverse split can be toxic and catastrophically dilutive to existing shareholders. The Senior management should do well as they keep granting themselves tens of millions of shares to stay in step with the potental new investors who will finance the ongoing research. Let's have some honesty and discipline to limit the dilution.
And how do you expect ACTC to A: pay for the SEC fine and B: the Camofi(among others) settlement and C: the escalating costs of the current Phase I and upcoming Phase II trials and D: the Platelet IND/trial???
Read the Proxy ASAP. Devil is in the details. No specifics around the preferred shares in the Proxy and that is dangerous and could be disastrous for current shareholders. GARY must explain is detail why ACTC needs a preferred share allotment.