NewGen BioPharma Corp. (NEWG)

[Big Brother]

The more I look at the way this merger is being structured I don't mind it at all. In probably 95% of mergers you see on the OTC the incoming company pays a set amount of $$$'s, to the shell owners, for a controlling block of shares.

In this case, because of the value of NewGen, the shell holders are actually giving up control of the shell and PAYING the incoming company, up to $2M dollars, because they know the shares they get in return will have substantial value.

I suppose in a way it's bit of a risk for Greenwind shareholders because they have already invested a substantial amount of money upfront into the shell, and they will owe another $400K upfront to close the deal. So you have to assume Greenwind has done extensive due diligence on NewGen, they wouldn't be doing this unless they were certain that this was going to be a winner.

However, the only way to ensure this works for BOTH parties is to have non-dilutive measures in place. If NewGen dilutes then Greenwind shareholders lose money......on the flip side.....if Greenwind dilutes then it hurts NextGen's market cap and ability to uplist to a more liquid market. This is probably going to be somewhat thinly traded until they uplist, it wouldn't take much dilution to tank it, so both parties need to be careful, they have to keep each other in check.

I feel pretty confident this will uplist, Dr Jaikaria doesn't strike me as a Pink Sheets type of guy, if he spearheaded Immunocellular's uplisting there is no reason to think he would not do the same with his own company IMO.