Company: AAOI
Filing Date: 2025-04-28
Form Type: DEF 14A
Source: 0001104659-25-040212
Chunk: 70

Company: APPLIED OPTOELECTRONICS, INC.
Filing Date: 2025-04-28
Form: DEF 14A
Chunk 70
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 new markets. Having additional shares of common stock available for issuance would allow us to, among other things, complete equity financing transactions to help fund such expansion opportunities and additional research and development programs. These equity financing transactions may include any future at-the-market equity distribution programs, convertible debt financings, modifications to existing convertible debt, additional employee benefit plans or reserving additional shares for issuance under existing plans, implementing stock dividends, and other general corporate purposes. • The additional authorized shares would enable us to act quickly in response to opportunities that may arise for the actions and activities described above or other corporate purposes, in most cases without the need to obtain additional stockholder approval or the need to convene a special stockholders’ meeting before such issuances(s) could proceed, except as required under Delaware law or under Nasdaq rules. • Our Board’s belief that it is in the best interests of the stockholders for the Board to have the flexibility to issue additional shares of common stock in any or all of the above circumstances. Effect of the Share Increase Amendment The proposed increase in the number of authorized shares of capital stock and common stock will not: (i) change the number of shares of stock outstanding unless and until any such shares are issued; (ii) alter the rights of current holders of our common stock; or (iii) have any immediate dilutive effect. However, to the extent that the additional authorized shares of capital stock or common stock are issued in the future, they may decrease existing stockholders’ proportionate equity ownership and could be dilutive to the voting rights of existing stockholders, as well as to the Company’s earnings and book value on a per share basis, depending on the price at which such additional shares are issued. Stockholders will not have preemptive rights to acquire any common stock issued in the future. Thus, current stockholders do not have a prior right to purchase any new issue of capital stock to maintain their proportionate ownership of our common stock. Although the issuance of additional shares of common stock could, in certain instances, discourage an attempt by another person or entity to acquire control of us, we have not proposed the increase in the number of authorized shares of common stock with the intention of using the additional authorized shares for anti-takeover purposes. At present, we do not have any plans, arrangements, or understandings to issue any of the proposed additional shares of common stock that would be available as a result of the approval of the Share Increase Amendment, other than potentially through our existing at-the-market equity distribution program and equity