It is beyond me how your company would expect to have increased liquidity after introducing themselves to the market place in this manner. Essentially you are intending to nearly wipe out your first public shareholders by an R/S and less than a 4% stake in your new company, while you bring your company to the market. Out of the 19.3 Million shares you will have at the closing of this reverse merger, your company will own 18.5 million of these shares and will have a tough time maintaining a liquid market with your brand new reputation.
You have acquired a listing at the expense of investors who saw promise in an early investment in Amstar, speculating on lasting relationship with your company. What you have done is shot yourself in the foot.
Where do you expect the market to price your stock? $2? $5? On the Pink Sheets when at the first chance you illustrate that you don't have shareholder's interests in mind? How do expect to promote the stock following this type of treatment to your brand new shareholders? How do expect to find buyers with the O/S and market expected to be so thin?
What may have served the interests of everyone better would be a forward split of Amstar stock, and a bit of a reward to those who thought they would give your company a shot as a growth investment.
This might be the most poorly executed reverse merger that many have seen. Hopefully at the court hearing, Amstar stockholders voice their opinions and understand these terms are not in their best interests, rather than the brilliant minds that drew up this transaction.
What was Mr. Wilson's compensation? Was it worth it to him to have his own holdings diluted into oblivion, or did he already get the opportunity to sell his shares? How about the board of directors?
It might be time to go back to the drawing board on this one if it isn't too late. Short sellers love companies who reverse split and dilute in one transaction.
I ask again, who do you expect to sell your shares to when all is said and done?
Amstar is thankful for the interest in its future stock possibilities and hopes to have you all as Amstar International Shareholders soon.
Not very likely....
