BOULDER CITY, Nev.—Industrial tire maker Amerityre Corp. is asking shareholders to approve increasing the number of authorized common shares to 75 million to help raise $2 million to $3 million to help "meet … current obligations and grow revenues ..."
Amerityre disclosed the request for the additional 20 million shares in its proxy statement for its upcoming annual meeting on Dec. 4.
The company recently reported a net loss of $1.13 million for fiscal 2012-13, which was its 17th consecutive annual loss, bringing the collective loss over that time to $63.1 million on revenue of about $29.5 million.
In requesting an increase in shares, Amerityre noted its common stock has been trading at 10 to 12 cents a share, thus requiring the issuance of 20 million shares to cover the desired new capital. The Boulder City-based firm also noted that its efforts to obtain new bank financing have thus far been unsuccessful.
Amerityre management said the new funding is necessary because the firm has been unable to increase sales "as much as management believes is possible" due to the funding constraints.
The tire maker noted it total indebtedness stood at $1.27 million on June 30.