Resolution
posted on
May 31, 2008 10:53PM
Be it resolved that Spider Resources Shareholders deny the Board of Directors any right to even consider any type of 'reverse split' in the Common Shares of this fine Mineral Exploration Company, and further, be it also resolved that if and when desiring to raise cash in the future the Board of Directors will do so by making an 'offering' of New Issue Shares from the Treasury of the Company and made available directly to its share holders of record, on a date having been well advertised in advance of the Closing Date for the offering, and that share holders of record will be offered the right of first refusal to the purchase of the shares offered on a pro rata basis. Upon the closing of the offering, any unsubscribed shares in the offering will be made available for distributed to any other share holder having made a request for a portion of the unsubscribed shares of the offering at the date of the closing of the offering.
The wording can be improved but the basic idea should be plainly clear. Those with confidence enough to hold shares in the company should have the right to future funding of company operations before the company sells part of the company to anyone else to obtain operating funds.
As things typically stand now, in far too many companies similar to SPQ in terms of operations and funding sources, the average share holder gets diluted when new shares are issued to others without the current average share holder being given access to the offering as well. In addition the company too often forks out huge quantities of shares FREE to either or friends of the purchaser for finding a purchaser for the offering. And all to often these offerings occur without the Shars Holders advance knowledge of what the Board of Directors has been up to. The AVERAGE Share Holder is then further insulted by having the New Issue Shares have a DISCOUNT Warrant attached to the New Issue Shares which is then used by the purchaser to further harm the AVERAGE Share Holder via Short Selling of Shares that can be covered by the DISCOUNT Warrants if the Shorting of Common Shares moves against the individuals conducting the Short Selling.
If similar schemes were to occur in Casino's the perpetrators would be subject to racketeering type criminal charges. BUT NOT IN THE BUSINESS WORLD! ?????
Old Joe
PS: Learn to be your own best friend and do more than expect to be treated fairly by those who will NEVER EVER consider such an option on your behalf.