Novation Holdings Inc. (NOHO)

[I-Glow]

You might want to read the 8-k as there isn't any good news for shareholders.

From the 8-k:

All outstanding fully diluted common shares of Registrant at the closing of the merger, including the common shares issued in the conversion of outstanding convertible promissory notes, will be exchanged in the merger on the basis of one new, post-merger share of ACX common stock for each 10,000 pre-merger common shares of Registrant issued and outstanding

But there is more bad news:

The ACX common shares issuable in the merger to the pre-merger common shareholders of Registrant, including those common shareholders resulting from the pre-merger conversion of Registrant’s outstanding convertible promissory notes, will represent, collectively, ten percent of all of the ACX common stock issued and outstanding immediately upon the closing of the merger.

So, they will do a reverse split of 10,000:1 - then all of the NOHO O/S will represent just 10% of the ACX stock.

Then we find in the 8-K:

The authorized capital stock of Novation consists of 10,000,000,000 shares of common stock par value $0.001 per share (“Novation Common Stock”) and 5,000,000 shares of Novation’s preferred stock, par value $ 0.001 per share (“Novation Preferred Stock”). As of the date of this Agreement, there were (a) 6,743,543,403 shares of Novation Common Stock issued and outstanding

What??? The O/S is 6.7 Billion!!!

So 6.7 billion shares will be 10% of the new company's O/S.

the 6,743,543,403 shares of NOHO will become 674,354 shares and that will be 10% of the new company's O/S.

So the new O/S will be 6,743,543 shares.

If you owned 100 million shares of NOHO that would have been 1% of the A/S.

Now the 100 million shares will be 10,000 shares after the R/S.

But here is the kicker - those 10,000 shares will now be only 0.15% of the O/S - and who knows what the A/S will be - so it will be diluted even further.

IG