No matter how this reflects on CNCG, I wanted to post this SEC definition to show how little work you people did on your own to even know the basics of a very important subject involving all of you.
The SEC wording below is stock trading 101 material that every investor in these penny companies should be able to recite in their sleep. Yet, how many of you ever took the time on your own via REAL due diligence to research what CNCG was doing?
Did any of you bother to ask the hard and pointed questions to ALL of the CNCG board members that would have drilled down into more truth? Or did you communicate with just one person and take it as the Gospel?
How could any of you CNCGers have made an informed decision without proactively getting all the details straight from multiple sources within the company? Did you just take management's explanation at face value in print or on the phone for what was about to happen?
The merger was not the problem. It may eventually turn out for the best. I hope so. The lesson here is that, as penny stock players, the problem rests with how quickly you'll throw your money away on a whim. Let's just say that Wall Street Broker careers are not in your future.
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The SEC has defined reverse mergers as follows:
In a reverse merger transaction, an existing public shell company, which is a public reporting company with few or no operations, acquires a private operating company— usually one that is seeking access to funding in the U.S. capital markets. Typically, the shareholders of the private operating company exchange their shares for a large majority of the shares of the public company. Although the public shell company survives the merger, the private operating company's shareholders gain a controlling interest in the voting power and outstanding shares of stock of the public shell company. Also typically, the private operating company's management takes over the board of directors and management of the public shell company. The assets and business operations of the post-merger surviving public company are primarily, if not solely, those of the former private operating company.
