Rufus cannot set the price to $15
"Correct me if I am wrong, but it was my understanding that the price change although associated with the merger was not done under the umbrella of the merger itself, but rather in the process of a reorganization, which does allow for a stock to be revalued. If this were the case then the stock could be reset based upon the book value of the reorganized company."
First of all, a stock never gets "reset", at least not by the company. The MARKET always determines the price of a stock. Rufus cannot "set" the price of the stock.
In the case of a merger, the stock of the merged companies ALWAYS reflect the post-merger value immediately upon the announcement of the merger. Think about a buy out, where say a company XYZ is trading at $10, and then there is an announcement that the company will be bought for $15/share. The stock doesn't trade at $10 until the day the takeover is final. The market anticipates the buy out and the stock immediately shoots up to a price close to $15. It may trade a little below $15 to reflect the risk that the buyout may get called off. If FHAL was really worth $15, it would be trading real close to that price right now, in anticipation of the completion of the merger.
"With this in mind, it has been my understanding so far that the reverse merger was entered into in an attempt to achieve a quick and painless OTCBB and eventually NASDAQ listing. "
The CVSU shareholders gave away over half of their company in doing the merger with FHAL. Which is crazy, unless CVSU isn't worth much. Companies can typically pay under $1M for a BB shell company.
"The company in this process is also, to my understanding, being reorganized resulting in the new stock price that we are all waiting to see."
The only way a reorg results in a higher stock price is if their is a reverse split. But in that case, while the stock price may go up, shareholders have their shares reduced and don't make any money off of the split.
