TheGlobe.com Inc (TGLO)

[Toxic Avenger]

Yes, except Delfin only owns 71%, so if they transfer $1 million into the company, they immediately gave away $290k to shareholders from whom they receive nothing.
TGLO is currently valued at $90 million. So Delfin would have to transfer $90 million of assets they own outright to justify the TGLO market cap at 20 cents. They'd have an immediate loss of $25 million in asset value.

$25 million just to get a stinky pinkie shell seems a bit much, no? Especially when the first 71% cost $25k.

And of course it look like the entire capitalization of Delfin is under $25 million, with additional monies borrowed (hint, the banks aren't going to watch their encumbered assets given away to TGLO shareholders).

So this is a great stock to flip to people who don't understand mergers, but I don't think you want to be a long term shareholder when the music stops. The only chairs left will be occupied by insiders and those who sold.

Best of luck.