Traack Technologies Inc (TRAA)

[VeronicaFox]

Interesting post, and the poster's correct - it makes no sense.

Be careful! Discovered there's massive dilution with this acquisition. Found the terms buried in the EX-10.9 filed with the 10Q yesterday. And it's not good. 1 share of Series A Convertible Preferred Stock converts to 100 shares of common stock. So the 288,588 shares of Series A Convertible Preferred Stock issued to GeoTraq convert to 28,858,800 common shares. Yikes! ARCI only had 6,687,000 shares as of yesterday's 10Q. So the share count is going to more than QUADRUPLE!?? Maybe the stock still gets a pump higher, but not sure what management is thinking here. Awesome turnaround quarter announced this week...then dilute the hell out of stockholders to make a dinky acquisition. Makes no sense! Maybe stock gets a pump higher...but I sold out on the premarket pop.

In full: https://investorshub.advfn.com/boards/read_msg.aspx?message_id=134020421