I suspect it has to do with Vert Capital and the way they attempt to relaunch distressed companies. I posted something about their history in a previous post. Vert's been attempting with S-1's on another of their deals - they are up to amendment #18 or something on it. It still has a reasonable "storyline" why not try a r/m? Why they chose that shell I do not know - but will have to look deeper.
I had the gut feeling it was more of a distress sale and the reason BOTH co-founders and a very talented president moved onto other things. Why wouldn't they stick around if it was about to be a NASDAQ/NYSE company as some claimed?
People seem so focused on the revenues from a year ago but fail to mention what is lying underneath that shell. And the 1 for 100 r/s being a possiblility in January - well hello!
My gut tells me the SEC and FINRA will keep an eye on this one - especially after those comments made in the 8k.