Tao Synergies Inc (TAOX)

[Cyosol]

The headline looks better than what the agreement actually says. Neurotrope shareholders didn't get a higher percentage for nothing.

If you read the fine print you'll notice that the new agreement prints millions of new shares for Metuchen shareholders if certain milestones are reached before the one and two year anniversaries of the merger.

They also snuck in amended warrant agreements so the warrants are now converted into spin-off warrants instead of Petros warrants where the cheapest ones (there's about 11 million of them) can be exercised for about $0.83 after the spin-off.

"The initial exercise price of the Spin-Off Warrants will be determined as follows for each of the Original Warrants:

...(iv) for the Series H Warrants, by dividing $20 million by the number of shares of common stock of the Spin-Off Company outstanding immediately after the Spin-Off, excluding any shares issued in connection with a financing of the Spin-off Company after the date after the date of entry into the warrant amendment agreement."

$20 million / about 24 million outstanding shares = $0.83 exercise price