There are a few reasons of benefit to not start over with a fresh equity raise.
1) There is clear and numerous legal documentation for Canada that as long as they keep operating for two years, they save a fair amount on taxes.
2) They save months of time using BIOAQ shares rather than the time to file and certify for their new shares
3) There is a ton of interest already and by simply "rebooting" the current shares, the hardest job these days -- getting market attention -- is already a done deal. In an age of social media, this might be the most compelling reason
4) Instead of just lawyers, the hands-on CEO would have to walk through all the setup at the exact same time that they have to restart succinic acid production as well as retool for their "higher return" products referred to in the Visolis statements. That time/manpower issue is actually huge considering they are setting up a holding company and operating their existing companies. Creating a new executive team and rehiring workers, sending new chemists and engineers from Cali to Sarnia... It is a lot, not to mention they already have cranky suppliers who just got stiffed on overdue bills...
And really, my question is why would they set up a holding company rather than just rebuild/rebrand the company they just bought if they didn't want to make that exact purchase: for the books and the shares with an existing stock ticker?
