COMS/USRX Message Board

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Technology Stocks : COMS/USRX

COMS 0.00110

-50.0%

Oct 29 10:53 AM EST

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To: James H. Williams who wrote (1334)	5/16/1997 4:18:00 PM
From: Dick Smith	of 1384

Issuing more COMS shares... David Lawrence's explaination seem right on track. Note that the reason for asking for a billion shares is not because they're going to run up against the billion right away, but because they like to have some slack just in case they issue a few more shares for some reason... The usual reasons are either: (1) they need to issue some shares because of an option they have granted, usually to a key employee, or (2) they need to issue more shares because they are buying another company for stock. In the past, both USRX and COMS have purchased other companies for stock without needing to ask the stockholders for authorization for more shares, because they had some unissued shares authorized. For this BIG merger, COMS might be able to issue enough shares for the merger (as I read the proxy, it sounded like they were authorized barely enough), but then wouldn't have any room left for anything else that came up. The exact number of shares currently outstanding from both companies is in the proxy (over a megabyte of clear, easy to understand legalese!), so you can check it all out.

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