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Stockholders’ Equity (Deficiency)
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12 Months Ended |
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Feb. 29, 2012
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| Notes to Financial Statements | |
| Stockholders’ Equity (Deficiency) |
Note 4. Stockholders’ Equity (Deficiency)
Stock Splits
On June 21, 2011, the Company effected a 12 for 1 forward stock split of the Company’s outstanding common shares to all stockholders of record as of the close of business on June 20, 2011. No cash was paid or distributed as a result of the forward stock split and no fractional shares were issued. All fractional shares which would otherwise be required to be issued as a result of the forward stock split were rounded up to the nearest whole share. All references to the Company’s outstanding shares and per share information for all periods in the accompanying financial statements and footnotes have been retroactively adjusted to give effect to the forward stock split.
On February 15, 2012, as part of the redomestication and merger of Elite Nutritional Brands, Inc. into Aspen Group, Inc., the Company effected a 1 for 2.5 reverse stock split of the Company’s outstanding common shares. No cash was paid or distributed as a result of the reverse stock split and no fractional shares were issued. All fractional shares which would otherwise be required to be issued as a result of the reverse stock split were rounded up to the nearest whole share. All references to the Company’s outstanding shares and per share information have been retroactively adjusted to give effect to the reverse stock split.
Authorized Shares
On February 14, 2012, Aspen Group, Inc., the Delaware corporation, amended its certificate of incorporation whereby the capital structure was changed to 130,000,000 shares consisting of: (i) 120,000,000 shares of common stock having a par value of $0.001 per share, and (ii) 10,000,000 shares of preferred stock having a par value of $0.001 per share.
Common Shares
On February 27, 2010, the Company issued 43,200,000 common shares to its founders in exchange for cash proceeds of $9,000 to the Company. The issuance of the shares was made to the sole officer and director of the Company and an individual who is a sophisticated and accredited investor, therefore, the issuance was exempt from registration of the Securities Act of 1933 by reason of Section 4 (2) of that Act.
On October 20, 2010, the Company issued 5,760,000 common shares in exchange for cash proceeds of $12,000. |