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Re: boomer0921 post# 162900

Tuesday, 05/01/2018 11:39:43 AM

Tuesday, May 01, 2018 11:39:43 AM

Post# of 183214
In almost all OTC reverse mergers, legacy common shareholders of the pubco get screwed. While some are smart enough to use the hype during and just after the closing of the deal to get out when the reality is hidden in pref share issuances, share exchanges and the like...what ends up happening (via various different mechanisms) is the pubco legacy shareholders end up with a small fraction of the equity of the new company.

And the reason it almost always happens is two fold

1) The merging private company has zero ACTUAL interest in giving equity to the existing pubco common shareholders for essentially nothing in return

2) The fact the pubco is controlled by a small group of insiders, and NOT the common shareholders, allows them to do anything they want.

If DPT merges into BVTK, they WILL NOT be buying the common shareholders equity to gain ownership, they will buy the controlling preferred stock from Cellucci personally to take control. Once they have control they can start over...and the legacy common shareholders of the pubco serve no purpose whatsoever in moving that process forward.

Seen it happen too many times.