Colin,
Shareholders have called the transfer agent and found out that the number of outstanding shares has increased by 40,000,000 since December. Many posters with a negative view of EUTO management believe that they keep increasing the outstanding shares as a means of providing themselves personally with cash. Those with positive views of EUTO have posted that EUTO is issuing the additional shares to pay off their liabilities.
There are two possibilities of what is happening to those new outstanding shares that have been posted. The first is that EUTO is actually selling those additional shares into the float at market prices to raise cash. The shares would fall under an exception that allowed them not to be restricted. That is what my previous posts were referencing. I was using an average of $.01 per share as the selling price to determine the amount of cash EUTO would have received since December, and comparing that to the amount of liabilities EUTO stated they had in a press release. The cash received would have been far more than the stated liabilities.
The second possibility is that EUTO is issuing those shares, which may be restricted, to it's creditors again to pay off their liabilities. Even if those shares are restricted and haven't made their way into the float, using the same $.01 average value per share, the total value of the additional 40,000,000 shares exceeds the stated liability.
In either case, the question remains - what is EUTO really doing with the ever increasing outstanding shares, other than paying off their liabilities?
Many expect the number of outstanding shares will continue to increase, since EUTO increased the authorized shares to 500,000,000.
I hope this explains the issue.
Judith
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