Question for those who have been trading pennies long-term; has anyone actually seen and/or been through a spin-off like the one we have here? I've posted with Blue about the likelihood of investors working together to maximize value through an orderly sale of a few shares over a period of time so that the SP does not plummet and all are able to profit at the highest possible levels on VGID's board and have doubts that will occur.
However in researching spin-off's, I've seen a couple that and the price action actually showed an increase from the initial share price over the first few days before embarking toward a progressively lower share price over a period of time that might be 5 - 7 days and as long as a few months. If that occurred, we will all be satisfied, but that is with issues that spun new shares off using an IPO approach in which a new ticker was created from scratch. (That is how Buzzy originally tried to spin out FHBC.)
Here, we have a combination of a Reverse Merger and a spin out of a new company. RM's seem to generally occur with companies that already have a pps that is in the trips; not 2.50 X 5.00 (currently 1.50 X 2.00), and their pps generally increases due to the prospects of being merged into a clean company with the potential for positive earnings and growth. THIS TRULY IS A UNIQUE SITUATION IN PENNYLAND.
So what do you veterans think will happen??? I am hopeful that we don't immediately spin the pps to less than .01 overnight although I do expect to see pps drop soon after the shares arrive in our accounts. I am hopeful the SP can settle in .20 - .25 range while Fernhill gets her sea legs, but I doubt that happens as the key word is hopeful.
