Plandai Biotechnology Inc (PLPL)

[Doctorday]

EV Hotels is a private company seeking to reverse merge into PLPL, in order to become a publicly trading company on the stock market. Reverse mergers are typically faster more cost effective means of attaining a listing rather than going through the full IPO process. PLPL is just a publicly trading cleaned vessel that can facilitate that.

Investors often invest into shells at depreciated price points, in the hope that a private company will reverse merge into them because if that does happen, the ticker then attains the book value of the company that has merged in. It is for this reason that many of the largest penny stock runners have been reverse merger plays.