I cannot imagine how IFCR can pay for the 2 prospective acquisitions he mentioned. For the trucking industry, the ave market cap is approx .7 times revenues. Mathematically, that assigns a $14 million market cap to the combined $19 mill in revenues for the 2 subs they're looking at. The $14 mill would be a reasonable price to pay for both subs. Where can IFCR get $14 million? Or $1 million for that matter?
The breakup fee that Smith & Morris might have to pay certainly won't be this much.
Using the 5,000,0000 shares that will be available (10 mill will be authorized and 5 mill issued post R/S) will be valued about $500,000 at $.10/share on day 1 post R/S-- so that doesn't make a dent either.
Their two existing subs might be bringing in $6 mill in revenue, according to IFCR press releases. That's not going to net much if any profit.
I don't believe that they are in any position to acquire new subs.
(Especially after reading yesterday's 8-K outlining their delinquencies)
Wouldn't it make more sense to get the audits done, let the price rise to $.0008, a fair value for a $6 mill revenue trucking company, and then do the R/S?
That strategy may give them enough resources (using the available 5 mill new shares at $.80/per share=$4 million + any collected breakup fees from Smith & Morris) to acquire the $7 mill sub in Florida for example.