Reverse Mergers & Low Float Plays

[Potse]

UMFG(.0058)...Ridder Trader reverse merger, 1:30 RS.......

I've accumulated some shares of the UMFG shell under the .005 level. This shell/RM has not received a lot of attention. Most investors are probably turned off by the pending 1:30 reverse split and preferred shares that are convertible into 2.2B shares. Despite those risks, I'm a little bit intrigued by the potential on this play. The reverse merger target is Ridder Trading Group -- an artificial intelligence, fintech and brokerage firm with headquarters in Malaysia.

https://riddertrader.com/

The biggest problem I have in analyzing UMFG is trying to determine what number I should use for the legacy share count (either 30.5M or 200.5M). Legacy share valuation is, in my opinion, a pretty effective numbers-based analysis approach for use on shells and reverse mergers. By limiting my buys to that .005 level, I believe I have done a reasonable job of mitigating some of the risk if the legacy share count turns out to be the higher number. If it does turn out the legacy share number is 30.5M, then I have been buying this shell below a $150K legacy share valuation. I think it is completely reasonable to have a legacy share target valuation of at least $1.5-2M on this shell/RM.

Below are two articles related to Ridder's acquisition of the UMFG shell. The first article was particularly interesting to me because the verbiage states that Ridder "fully acquired" and had "full control" of the shell. My primary "concern" on UMFG is whether that information is accurate, or whether the preferred shares and that 170M newly-issued share block are actually owned by some type of intermediary not directly connected to Ridder. I tried to get confirmation that Ridder itself owned the preferred shares and the 170M shares that were issued, but the consultant on the shell never responded to questions I had. Excerpt from the first article.......

Ridder Trader Group has brought good news to the market and investors. In the past three years, Lide Group has gained strong support and trust from the market, rapidly developed into many countries around the world, and after integrating the group's business resources, it decided to flex its muscles in the United States. Therefore, on July 25 this year, Li De Group officially fully acquired the US listed company UXXX (based on the fact that the company is currently reorganizing its structure and injecting assets, the full name of the acquired company will be announced after completion), and obtained full control of the equity. . This will be a new milestone for Lide Group to move towards the international stage.

https://news.sina.com.cn/sx/2023-09-01/detail-imzkezte2977227.shtml
http://www.autodrivingweekly.com/sociology/160.html

You can find some information and videos related to Ridder in the Facebook account below. The Ridder President visited New York and the stock exchange in late December. In the interview below he talks about the listing in the United States, the MOPAI app, a possible Nasdaq/NYSE listing, mentions the possible use/partnership of its technology in the biotech industry, hopes that Ridder's share price will reach $5 within 3 years, and the company will be listed on one of the major exchanges.......

https://www.facebook.com/riddertradergroupRTG

https://fb.watch/pqMwnVLKn0/