SECURITY
OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
The
following table sets forth information regarding the number of shares of our
common stock beneficially owned as of February 20, 2008 by (i) each person
known
to us to be the beneficial owner of more than 5% of our common stock; (ii)
each
director; (iii) each executive officer; and (iv) all of our directors and
executive officers as a group. Unless otherwise indicated in the footnotes
following the table, the persons as to whom the information is given had sole
voting and investment power over the shares of common stock shown as
beneficially owned by them. Unless otherwise indicated, the address of each
person shown is c/o Protocall Technologies Incorporated, 47 Mall Drive, Commack,
New York 11725-5717.
Beneficial
ownership is determined in accordance with the rules of the SEC and generally
includes voting or investment power with respect to securities. Shares of our
common stock which may be acquired upon exercise of stock options or warrants
which are currently exercisable or which become exercisable within 60 days
after
the date indicated in the table are deemed beneficially owned by the optionees.
Subject to any applicable community property laws, the persons or entities
named
in the table above have sole voting and investment power with respect to all
shares indicated as beneficially owned by them.
Name
of Beneficial Owner
|
|
|
Number
of Shares
Beneficially
Owned
|
|
|
Percentage
of Shares
Beneficially
Owned
|
|
|
|
|
|
|
|
|
|
Bruce
Newman
|
|
|
5,218,965
(1
|
)
|
|
3.90
|
%
|
Peter
Greenfield
|
|
|
11,874,732
(3
|
)
|
|
8.91
|
%
|
Brenda
Newman
|
|
|
4,501,393
(2
|
)
|
|
3.39
|
%
|
Syd
Dufton
|
|
|
1,966,011
(6
|
)
|
|
1.50
|
%
|
CIMOS,
Inc.
|
|
|
12,110,982
(4
|
)
|
|
9.14
|
%
|
Joachim
R. Anzer
|
|
|
51,841,471
(5
|
)
|
|
35.12
|
%
|
Monarch
Capital Fund
|
|
|
12,298,133
(7
|
)
|
|
9.32
|
%
|
Directors
and executive officers as a group (four persons)
|
|
|
23,561,101
(8
|
)
|
|
16.64
|
%
|
_______________
(1)
Includes
605,494 shares of common stock issuable upon exercise of stock options granted
under the Protocall 2000 Stock Incentive Plan, which are currently exercisable,
and 3,930,871 shares of common stock issuable upon exercise of stock options
granted under the Protocall 2004 Stock Incentive Plan, which are currently
exercisable.
(2)
Includes
591,012 shares of common stock issuable upon exercise of stock options granted
under the Protocall 2000 Stock Incentive Plan, which are currently exercisable,
and 3,227,781 shares of common stock issuable upon exercise of stock options
granted under the Protocall 2004 Stock Incentive Plan, which are currently
exercisable.
(3)
Includes
4,130,871 shares of common stock issuable upon the exercise of stock options
granted and currently exercisable under the Protocall 2004 Stock Incentive
Plan.
(4)
Includes
3,385,452 shares of common stock issuable upon the exercise of currently
exercisable warrants. Based on a Schedule 13G filed on February 27, 2006, and
other information known to us.
(5)
Includes
18,468,336 shares of common stock issuable upon the exercise of currently
exercisable warrants that expire between June 2008 and October 2010.
(6)
Includes
1,966,011 shares of common stock issuable upon the exercise of stock options
granted and currently exercisable under the Protocall 2004 Stock Incentive
Plan
to current and former directors and executive officers.
(7)
Included
2,884,615 shares of common stock issuable upon the exercise of currently
exercisable warrants that expire November 2013. Based on a Schedule 13G filed
on
January 3, 2008, and other information known to us.
(8)
Includes
1,196,506 shares of common stock issuable upon exercise of stock options granted
and currently exercisable under the Protocall 2000 Stock Incentive Plan. Also
includes 13,255,534 shares of common stock issuable upon exercise of stock
options granted under the Protocall 2004 Stock Incentive Plan.
AMENDMENT
TO ARTICLES OF INCORPORATION
Our
board
of directors and stockholders owning a majority of the voting power
of our outstanding shares of common stock have approved an amendment
to our Articles of Incorporation to increase the aggregate number of
authorized shares of our common stock from 200 million to 550 million. The
Articles of Incorporation presently authorize the issuance of 200 million shares
of common stock. The board of directors recently authorized the issuance of
5,000 shares of preferred stock.
Text
of Amendment
The
amendment would result in the text of Article III of our Articles of
Incorporation reading as follows:
1.
Number
of Shares
.
The
aggregate number of capital stock shares which the Corporation shall have
authority to issue is five hundred fifty million (550,000,000) shares of common
stock, $.001 par value. The Board may, in its discretion, issue 5,000 shares
of preferred stock, $.001 per value, with such terms and
conditions as it may decide, without shareholder approval.
General
Effect of the Proposed Amendment and Reasons for Approval
Our
board
of directors unanimously recommended that we approve the amendment for the
following reasons:
Availability
.
Of our
200 million authorized shares of common stock, 126,133,894 were outstanding
as
of the record date. As of the record date, after taking into account shares
of
common stock reserved for issuance under compensation plans, outstanding
warrants and shares underlying convertible notes, we determined we have an
insufficient number of shares available for issuance. In addition, we are
obligated to increase our authorized shares pursuant to agreements we
entered into in connection with a previous financing. Absent any
unforeseen circumstances, it is not our present intention to actually issue
the number of shares being authorized.
Adoption
of the amendment would enable our board of directors from time to time to issue
additional shares of our common stock authorized by the amendment for such
purposes and such consideration as our board of directors may approve without
further approval of our stockholders, except as may be required by law or the
rules of any national securities exchange on which our shares of common stock
are at the time listed. As is true for shares presently authorized, common
stock
authorized by the amendment may, when issued, have a dilutive effect on the
equity and voting power of existing holders of common stock.
There
are
no preemptive rights with respect to our common stock. The additional authorized
shares of common stock would have the identical powers, preferences and rights
as the shares now authorized. Under Nevada law, stockholders will not have
any
dissenters’ or appraisal rights in connection with the amendment. The amendment
will become effective upon the filing, promptly after the expiration of the
20-day period commencing on the mailing of this information statement of
the Certificate of Amendment of the Articles of Incorporation required by
the General Corporation Law of Nevada.
REASONS
WE USED STOCKHOLDER CONSENT AS OPPOSED TO SOLICITATION OF STOCKHOLDER APPROVAL
VIA PROXY STATEMENT AND SPECIAL MEETING
The
increase in our authorized shares of common stock requires an amendment to
our Articles of Incorporation, which cannot proceed until stockholder
approval is obtained and effective. Stockholder approval could have been
obtained by us in one of two ways: (i) by the dissemination of a proxy statement
and subsequent majority vote in favor of the actions at a stockholders meeting
called for such purpose, or (ii) by a written consent of the holders of a
majority of the voting power of our outstanding shares. However, the later
method, while it represents the requisite stockholder approval, is not deemed
effective until 20 days after this information statement has been sent to all
of
our stockholders giving them notice of and informing them of the actions
approved by such consent.
We
determined that it would have been detrimental to our ability to complete the
amendment to solicit stockholder approval through the use of a proxy statement
because of the significant delay which would have occurred. We therefore
determined to obtain stockholder approval by written consent.
INTEREST
OF CERTAIN PERSONS IN MATTERS TO BE ACTED UPON
None
of
our directors or officers or their affiliates have any interest, direct or
indirect, by security holdings or otherwise, in any of the matters to be
approved by the stockholders as described in this information
statement.
WHERE
YOU CAN FIND MORE INFORMATION
We
file
annual, quarterly and special reports, proxy statements and other information
with the U.S. Securities and Exchange Commission. You may read and copy any
reports, statements or other information we file at the Securities and Exchange
Commission’s public reference room in Washington, D.C. Please call the
Securities and Exchange Commission at 1-800-SEC-0330 for further information
on
the public reference rooms. Our filings with the Securities and Exchange
Commission are also available to the public from commercial document retrieval
services and at the website maintained by the Securities and Exchange Commission
at “http://www.sec.gov.”
You
should rely only on the information contained or incorporated by reference
in
this information statement. We have not authorized anyone to provide you with
information that is different from what is contained in this information
statement. This information statement is dated February 20,
2008.
You
should not assume that the information contained in this information statement
is accurate as of any date other than that date, and the mailing of this
information statement to stockholders shall not create any implication to the
contrary.
Dated:
February 20, 2008
|
By
Order of the Board of Directors,
Bruce
Newman
Chief
Executive Officer
|