My partner and I got off a call with one of our attorneys about 30 min ago. I had called him last week to ask a few strategy questions about UATG. He has been my attorney for more than 20 years and was involved in the transaction that preceded UATG with the previous management before UAT merged with the old company and became UATG. He looked into everything going on recently and got back to us this morning.
I wanted to confirm my suspicions of a pending merger and the recent 3a10's the company did. He contacted UATG's legal department and subsequently spoke with the ceo as well. Also, the ceo called me this morning while I was on the call with my partner and attorney. I spoke with him after and will get into that shortly.
Our attorney agrees that if the ceo is what we both think he is then all signs point to a merger of some type. In all likelihood it will be a reverse merger or UATG being bought by another company. I dont see this ceo giving up control so we looked into companies they are or might could be related to in some way. NextCast was a good candidate but they are not public and have filed nothing to go public. He did find some patent applications related to UAT technology but nothing with another company (They have a lot of patent applications in recently). We dont have a company identified but have narrowed down what they would look like so we should all put our heads together. The company they are going to merge with will most likely have the identical cap structure, be fully reporting QB or QX, be revenue positive, be a technology company that fits into UATG existing business model, Be trading at a minimum of $2 pps and have existing market liquidity proportional to UATG based on the pps difference.
Our attorney did bring up something that I found very interesting didnt know and didnt think of. He said that a 3a10 could be used for acquisitions! This fits in with the last shareholder letter so I am thinking we will see another filing that outlines the company buying another company. It could be the company they are looking to merge with for the purposes of uplisting. I asked if they could have done the previous 3a10 filings to merge but labeled them as debt. He said no and that would be illegal to his knowledge. One take away from the call is that we all agree that what the ceo is attempting is difficult, complex and not common. To me this shows the sophistication of the management team which says a lot considering what they started with. They were greenhorns in the beginning that got taken advantage of so its good to know that they got caught up!
It is my opinion that the current ceo is already involved with this new company and may even control it in some way without it being publicly made available. He would then take control of new company and take it to NYSE IMO. That is the only logical outcome IMO.
Now for my brief conversation wit the ceo. He called to let me know that he had spoken with my attorney and that if there was anything else I needed to let him know. The reason the ceo had to speak with my attorney is because legal could not expand on some of the information as it was not publicly available information and only the ceo could make the call as to what he would be willing to share. He told me and my attorney that the company was preparing to uplist and that they are on schedule to do so. He did mention a few things to me though. He told me that he could not confirm my suspicions but did caution me on speculating publicly (hes not going to like this post) as there are those that would trade off of such speculation which could be detrimental to the companys agenda. This was interesting because if I was wrong wouldnt it be detrimental to the shareholder? I think my suspicions are very close to being on the nose. He also said news is coming and it will be the beginning of a series of press releases that are scheduled. He told me to "be patient, buckle up and enjoy the ride" because apparently there is going to be a deluge of information coming out in the coming weeks. He wouldnt say what news or what it was in reference to or if it was good or great news (I asked).
I have to run out to the barn for a while but will be back later if anyone comes up with anything
