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Re: FSUBCSchamps post# 1433

Thursday, 03/19/2015 12:23:09 PM

Thursday, March 19, 2015 12:23:09 PM

Post# of 6772
I am sure you are aware when a company goes public via a reverse merger, such as is the case here, the company gaining control does not own 100% of the shares. In a lot of cases, there may be large shareholders from the previous company who can dump whenever they wish, it is also common practice for the broker if the reverse merger to be awarded a significant amount of shares as part of their commission as well as services they may provide during an after the merger. Those shares can also be dumped, usually after a certain period of time such as 6 months to a year.

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