Fortitude Group, Inc. (FRTD)

[seque]

Hope that investors understand that they are only getting shares of another company that is not known nor anything has been detailed as to their cap structure. To assess the true value of this so called acquisition one needs to value the other currency. Take FB. They paid $2.1 b for oculus a 2 yr old VR company. They could because the value of their own stock was very high. Thus the deal becomes cheap to FB and oculus is taking the price risk of FB. Have seen deals where thinly traded over priced stock is used for acquisitions only to see shortly thereafter the stock falls precipitously. Thus making the acquisition a disaster. Note also that there will likely be a lockup period in accepting such shares thus frtd shareholders will be stuck for 180 days unable to get out. I am assuming that the structure of such deal will include a floor thereby protecting value erosion for frtd shareholders. Without a floor or agreed to re pricing, even though it looks like a good deal, the value can erode quickly. Would want to know if the acquirer is a real company or another shell subject to high volatility. If protections aren't taken and this is just a shift in the paper, I would be very dubious. And it would seem any deal should be subject to a shareholder vote. Value needs to be locked down and be subject to a minimum level of value. At $.12, there's a value of $80 million on frtd. Perilla should include terms to readjust the number of shares received to arrive at the same value at the closing so to protect the downside. Only assume that he is protecting shareholder interest.