Grifco Inc (GFCI)

[best2listen]

The cart before the horse

The merger has not gone through but Jim Dial is buying O&G leases as part of the "roll-up".

"Our next step will be to meet with our investment bankers in San Francisco, CA next week with respect to capital structure post merger and details of how best to finance our targeted acquisitions pursuant to our roll-up strategy."

Why he doesn't wait 'till after the merger; that way Grifco isn't left holding the bag if there are problems/delays with the complex 3-way merger deal. I think that DD on the merger company, including finding all the outstanding shares, shaking out some of the shell's freeloaders, and finalizing the deal should take precedence over acquisitions. The final merged OTC/BB company would normally be in a better position to finance acquisitions anyway IMO.

The only thing I can come up with is that Mr. Dial's pursuing, or has an option on, a "great deal". Anyone else have comments on the pre-merger "acquisitions"?

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