InvestorsHub Logo
Followers 3
Posts 1404
Boards Moderated 0
Alias Born 10/15/2009

Re: Poptech post# 219581

Friday, 10/22/2010 1:12:40 PM

Friday, October 22, 2010 1:12:40 PM

Post# of 326387
A merger is very much possible, not saying it will be easy by any means.

Scanbuy does not have the resources but the VC's which invest into scanbuy do have the resources. The VC's come in first to pay down YA debt - takes board approval not shareholder approval to do that (yes I know the board is tainted by YA, but you never know-one of its biggest minions is now gone). Ya debt gone, no Ya calling shots.

Scanbuy VC's gets a chunck of authorized shares (issued by board, not majority of shareholders), more than half outstanding to become a majority - knocking Ya out, sure YA still has shares and will dilute into the news...but the time it takes to merge both Neom and SB together the repercutions of YA dilution is mostly gone (assuming they dilute as soon as possible). That's why I said it will take time for the company to become attractive.

Neom does not have cash, but it does have IP worth cash, very good deals in place and a stronger international presence (who knows how much that's worth)...therefore that's why VC's acquire shares of Neom at a low cost.

Then at that point VC's control both Scanbuy and Neom thus permitting a merger by majority shareholder approval, converting Neom shares into New Company stock. Ya's only a minority shareholder so they can't vote against that.

It will suck for us because of how many shares can be authorized, but long term you're looking at one heck of a powerful company...as both complement each other's weaknesses.

Long shot but plausible