Thursday, April 02, 2020 1:09:20 PM
Given that this reverse merger is not a scam then what motivation do the new owners have?
They want to access to cash for acquisitions or expansion without having to borrow it.
So trashing current shareholders with a reverse split would not be a great move from a public relations point of view.
A more likely scenario would be to increase the Authorized Shares. Dilution not elimination of shares.
Still not a great outcome for the present shareholders but not as destructive.
Just spitballing and sharing my best guess.
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