Inova Technology Inc.(fka INVA)

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INVA - The theories of merger -

FROM XUII filings Dec 16th 2013--

Plan of Operation

Our business plan for Xumanii is to enter the branded tablet market, app market and pursue acquisitions that may be synergistic to the company’s focus in various technologies.

In the current quarter, we received $74,301 in loans from third parties. We also received related party advances of $78,355.

Currently, do not have any future arrangements or commitments in place other than those listed above to complete any private placement financings and there is no assurance that we will be successful in completing any such financings on terms that will be acceptable to us.

The Company acquired NITH, LLC, a holding company, in December 2013. Subject to completion of a definitive agreement, this entity will hold a Communications company that had revenues of $20 million and EBITDA of $300,000 last year. It is an established provider of VOIP and mobile communications services to emerging markets It has offices in the US and China, and customers in 25 countries.

NOTICE THE WORDS, "the entity [NTIH] will HOLD a Communications company.... This appears to be carefully worded and allows for consideration pursuant to further XUII filings that have yet to be deduced with the proper intonations here. They will, in my opinion, in very short order.

So then, the use of a private shell, NTIH, a pure holding company can be very telling here, Would XUII own all of INVA and its wholly owned subsidiaries - and if so- how will they adjust for said merger by use of Authorized and Preferred stock exchanges? CEO Radly would only be signing these documents if the deal for Trakkers went through in some capacity. The XUII filing only speak to the original deal as noted below - acquiring of Trakkers from Inova for preferred stock as NOT going through. This is very telling of huge things in store for the very undervalued INVA stock. Any indication that their debt feature could be less of a burden, that a corporate or debt restructure is successfully underway and this stock will trade at significantly higher levels. Her ability to generate massive revenues is a huge catalyst here.

FROM XUII FILINGS- Dec 16th 2013-

On October 1, 2013, the Company announced that it was to acquire RFID business Trakkers LLC for 2 million preferred shares of Xumanii the preferred shares had a face value of $1, valuing Trakkers at $2 million. This acquisition entered escrow on October 1, 2013. However, the structure of the acquisition was such that it would have added approximately $4 million of debt to the Company while only adding approximately $1.4 million of revenue therefore the Company has taken the view that the is transaction did not meet the conditions required for closing and that it was not in the best interests of the Company to proceed with the acquisition. Therefore, the transaction has been canceled and the Company since successfully identified better acquisition opportunities.

Indulge and lets explore for now: one form of merger- across separate industry-

Conglomerate Mergers

Conglomerate transactions take many forms, ranging from short-term joint ventures to complete mergers. Whether a conglomerate merger is pure, geographical, or a product-line extension, it involves firms that operate in separate markets. Therefore, a conglomerate transaction ordinarily has no direct effect on competition. There is no reduction or other change in the number of firms in either the acquiring or acquired firm's market.

Conglomerate mergers can supply a market or "demand" for firms, thus giving entrepreneurs liquidity at an open market price and with a key inducement to form new enterprises. The threat of takeover might force existing managers to increase efficiency in competitive markets. Conglomerate mergers also provide opportunities for firms to reduce capital costs and overhead and to achieve other efficiencies.

Conglomerate mergers, however, may lessen future competition by eliminating the possibility that the acquiring firm would have entered the acquired firm's market independently. A conglomerate merger also may convert a large firm into a dominant one with a decisive competitive advantage, or otherwise make it difficult for other companies to enter the market. This type of merger also may reduce the number of smaller firms and may increase the merged firm's political power, thereby impairing the social and political goals of retaining independent decision-making centers, guaranteeing small business opportunities, and preserving democratic processes.

All the best
M