Hi Alan, good morning!
OK. Yea, I can explain this. (By the way, a Transfer Agent is a fairly good and unbiased authority on this subjet IMO)
The bottom line is, all 100 million common shares are authorized. So, if the company chooses to reissue them at any time, they have the right to do so and no one can stop them. They have, in effect diluted all the outstanding shares based on this possibility. Obviously, if the warrants are exercised, the company is going to use these "retired" shares to satisfy them. (the warrants, that is.)
Coffers is just that. The company can reissue those shares at their discression. So, in effect, they are now shares held by the company. I have left this a tiny bit oversimplified, but you can confirm what I say is true with any securites-knowledgeable attourney. |
