I don't think you fully understand a reverse merger - not intended as an insult. They are somewhat rare.
Right now, this company is for all our purposes, an empty shell. It owns all the legal stuff to run a public company, but no business is taking place.
Now, a profitable private company wants to become public, but the government makes it a very long and painful process, so companies find a failing public company on the verge of bankruptcy and just buy the company and put their good profitable business into the shell of a company.
I get the feeling you are still seeing mphase as the new company, but it won't be. Look at it this way:
In order to get a car into Mexico and make it legal so you can sell it, you need a valid car title. Mexico isn't picky. They allow you to use any title of any car. You just need a pencil with a good eraser. So you go to the junk yard and buy a car about to be destroyed and they give you a title for that car. You write in the make and model of the new car and drive it into Mexico, no questions asked. Now you can sell the car.
So your question is... how much is the title worth? Depends on the new car: not the one sitting in the junk yard. If it is a Ferrari, you can make some real money. If it is a car in the same shape as the old car, you can sell it for scrap.
So here, you know the buyer is viable business with a US branch. You also know that they plan on buying the main branch within months, so the company is profitable enough to acquire the other business early on.
Ask yourself... what price would you value a company that opens it's doors and is already making a profit? Think of it more as an IPO than a startup company. Could be .30, could be $3.00. Whatever it is, it clearly won't be .0001.
Will you get $3.00 for every one of your shares? NO. They will likely do a 100 for one Reverse Split first. That would put he float at a realistic number. The RS doesn't lower your value, it just cuts a pie into bigger pieces. Your account with 100mil shares now becomes 1mil shares, but the price tag goes from .0001 to .01. Then the new company comes in and the market values the company not at .01/share, but .45/share. That $10k investment now is worth $450k.
What if the company is only valued at .05 after the RS? Then you only make 500% on your investment.
