Shell Stocks; Reverse Mergers; Acquisitions; Zombies; Greys; & All "Other" Plays

[Potse]

MAVT(.01)...possible Firetainment reverse merger.....

Finished adding to my MAVT shell position yesterday (currently have a cost basis around .007). Risk level is high due to the filing delinquency and any lingering negative market reaction to the upcoming 1:25 reverse split, but the risk/reward around this sub-penny to one-cent area continues to look pretty interesting to me.

I do have some concerns regarding exactly what happens to the $400+K debt that MAVT may still have on its books. The April 8-K regarding the proposed reverse merger with Firetainment did not specifically address this. I'm not sure if there will be any debt forgiveness, shares issued (either pre- or post-split) for the debt, or if Firetainment plans to absorb and pay off any remaining debt obligations.

But based on the disclosed terms of this RM, I think there might be some decent money to be made here. If I am interpreting the agreement correctly, the share structure could be relatively attractive (probably under 10M shares outstanding, with legacy shareholders retaining roughly 13% of the company). If in fact that is how the merger plays out, then a post-split price of 25-cents per share and an accompanying low market cap would seem to be particularly attractive.

According to an April 2017 article, Firetainment had a sales goal of $7 million for fiscal 2017, up from $2.5M in the previous year. Some excerpts from that article......

With a combination of blue-collar work ethic, child-like enthusiasm and Silicon Valley ingenuity, Clark immediately pursued the goal of creating fire tables with cooking capability. He came up with the name Firetainment that night. Since launching in 2011, the company has seen 40 percent growth year over year. And Clark’s mid-meal brainstorm has blossomed into a $2.5 million business with 22 sales reps who oversee placement in 260 patio-lifestyle retail locations nationwide.........

.........With a sales goal of $7 million for 2017 and a new focus on retailers west of the Mississippi River, Clark is counting on his growing family of loyal employees to meet the challenges ahead. To elicit new ideas, he created an incentive that pays $500 to anyone who comes up with a new process that gets implemented. It’s a win-win arrangement, he explains.

“It makes your job easier and gets everybody focused on [how] we can get to where we’re doing $20 million, $30 million, $40 million with the same number of hands.”

http://www.crains.com/article/news/love-craftsmanship-family-values-stokes-firetainment-founder

https://www.firetainment.com/