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I was looking for that letter. Thanks.
FCCN is giving up 95% of its capital stock in exchange for 100% of Aero's stock.
Be back with some math. The dilution is going to be HUGE.
But RH is going to Jail !!!!!
IMHO
Thats about as much a plan as deciding to start a company because I want to work for myself.
Its apple pie.
A definitive agreement would have terms and conversion ratios and valuation considerations.
This plan is to conclude a deal.
Dont know how, dont know when, dont know for how much.
All textbook stuff.
What you havent discussed is the jockeying that goes on to determine fair value and the number of shares that the private companies former shareholders will receive.
And do they receive them from principals or from the issuance of new shares (which would have restrictions either way).
And given the number of shares already outstanding in FCCN, what rollback of FCCN(if any) is required to make the deal work for AERO prior to the merger completion?
But you dont build a house without plans.
There is no plan here
what does FCCN have to release press about?
Its sole operation is to conclude a deal.
What are they going to issue as a PR? "had a phone call today with Aero and everything looks good?"
And Aero is still a private company. Its business is not really FCCN's news yet because the deal is not consummated. So if FCCN is issuing news on AERO it is dangerous if the deal doesnt come to reality.
he will be leading the pack.
Maybe he can go States witness and get a better deal.
IMO
but how does FCCN raise the value of its stock?
It is only a shell.
too bad you dont follow ole warrens advice there
I hear there is a large short position.
So it could be green if MMs have to close out their positions.
IMO
In a merger, any merger, you establish fair value for both companies.
What is FCCN's fair value .... pretty much the value of a pink sheet listing. Lets say about $300k to $450k.
What is the value of AERO? .... I assume much much more.
So .... AERO and its existing shareholders have to have the majority of the shares after merger to make it fair to AERO.
How do they get the majority of share? (examples)
1. Issue 1 billion shares of FCCN to AERO shareholders in exchange for their AERO shares.
2. Roll back FCCN 100:1 and do a merger.
This is basic corporate finance folks.
Unfortunately it does not appear as FCCN has done this CF approach. And as such FCCN directors have put its shareholders at risk.
If past history of companies in this same situation holds true, I do know this.
If you were a good company like AERO, would you want to lose a good portion of your AERO shareholders value to a bunch of FCCN shareholders they do not know and have no duty of care towards?
Of course not.
You negotiate FCCN down because you have the good target company that FCCN has nothing without.
Euroclear is like an exchange.
It lists bonds and stocks for sale and people bid and purchase.
Kind of like Bloombergs.
You dont have accounts there per se.
A stock or bond has a Euroclear Number just like a company has a CUSIP number on the stock market.
Off the top of my head ... I would estimate the CBV would charge $50k and up. It is a good way of protecting both Boards of Directors as getting fair value.
Exactly.
FCCN shareholders are going to be diluted/reversed up the ying yang.
that is the only way this works for AERO
now if this technology could detect market manipulations ... we would all be rich!!!!
and Rufus would have been outed a long time ago.
lol
Good post.
This company has nothing.
Its most valuable asset is the CULT following that it has developed that is eager to lap up any lie told.
IMHO
as far as we all know the demo is still slated for the end of February.
Rufus is going to jail.
He will be in Club Fed within 6 months.
IMHO
Come on. Face it. There is NO GUARANTEE that the merger will complete. With the securities violations the standard contract gives all kinds of reasons why one company can say the other has defaulted and walk away.
This is the worst structured deal I have ever seen. They are treating us like mushrooms.... keeping us in the dark and feeding us ****.
The first thing that would have been negotiated would have been the escrow position for Aero and the o/s shares at time of merger completion. GGI's postion would have been negotiated too.
There are too many variables at this time for this stock to be taken seriously. Are the 30,000 shares I bought really 30,000 or will they be 300 after merger?
Or will Aero receive so many shares that the stock will trade in the sub-pennies?
These questions have to be answered before anyone can really pump this stock. To say this is a good price now could be true but is more akin to pinning the tail on the donkey when blindfolded.
IMHO
You hire a Chartered Business Valuator (CBV) and you can value any company or anything, private or public.
Andrew:
What a bogus answer.
A valuation of a business can be done at any time.
His answer just proves how messed up this reverse merger is.
In any merger Step One is to place a value on the business to be purchased.
Step two is two negotiate the split of stock. ie. how much stock targetco will get for its operating target company. This includes negotiations with principal shareholders who have large blocks of escrowed stock to "give up" to the targetco shareholders.
It also includes potential reverse splits to clean up the outstanding shares in the Pubco (read FCCN).
This whole process has been muffed from day one.
I should never have listened to my buddy and bought this stock at $0.058.
Best thing since sliced bread? But I got the moldy loaf!!!
usually when naked shorts buy back in ... the price goes up.
That is not what we are seeing here.
anyone who thinks you can chart a stock like this needs some real help
they had 63 mm free trading shares
But your numbers are based on complete conjecture.
You might as well be talking about a colony on Mars.
but how can you be saying this is a good buy now when you dont even know if Aero makes money.
If it loses money ... maybe the PPS will be dreadful.
If it is a good sized company .. it already has audited financials... just holding them close to their chest.
Differnces between Monroe and Aero:
1. Monroe only has 14mm shares o/s .... FCCN post merger ... unknown O/S
2. Monroe posts financials and profitablility is known ... Aero .... completely unknown
How can you conjecture as to share price?
You will ASSUME too much.
So right now people are buying shares based on ......
Certainly not on good information.
Those are material facts and should be disclosed.
You do not know how many shares will be outstanding after the merger. There must be some formula they are working with.
True, full and honest disclosure would give this information.
Right now we dont know if FCCN is buying a race horse free and clear or with a huge handicap.
down 16% on 3 million shares this morning.
Looking a a little red today
Usually in the definitive agreements they agree on a structure of the merged company. Otherwise ... what the heck did you agree to???
Last reverse merger I was in they reverse split the pubco stock 100:1 and then vended in a control position for Targetco.
We all ended up getting $0.10 on the dollar for our investment in Pubco.
OMG .. you dont know what the share structure would be on merger? Isnt that in the definitive agreement? What the heck did they agree on if not that?
Directors insurance is null and void if the board does not do their DD and conduct themselves in an ethical manner.
Can you not understand that people buy in a month ago and are now frustrated when it has lost 30% of its value?
Still hold on to hope but start to read more of the facts and some of them arent nice.
I think you hit the nail on the head.
They will never complete this deal. Lots of securities issues gives an excuse to walk away.
look at all of the issues of non-compliance with SEC rules recently posted.
The whole golden gate illegal shares fiasco.
If you had a good company ... would you want to vend into this mess??
why would you let the fox back in the henhouse??
Good companies do not reverse merge into a shell trading in this manner with this volume of shares out.
It simply gives the aura of a scam.
Who are you going to sue?
Rufus? Guaranteed his assets are hidden.
Mike? Try to find him.
CSHD? Essentially a bankrupt company