Coretec Group Inc (CRTG)

[Quikshft]

It occured to me that Core Optics probably has some debt that has to be delt with. Interestingly, that debt could be part of the reason the deal can close without an R/S. Not holding my breath on that, the share exchange agreement clearly states Reverse Split.

Quikshft - I am pessimistic that the current principals of Core Optics could have purchased the company when it was recently sold without taking on debt. If the Coretec Group simply took responsibility for the existing debt load under the current terms, would that mean the share count that needed to be issued to the current Core Optics owners to compensate them for selling would be diminished?

ChatGPT - Yes, if Coretec Group were to assume responsibility for the existing debt of Core Optics as part of the merger, it could potentially affect the amount of compensation (in the form of shares or otherwise) that needs to be issued to the current owners of Core Optics.

Assuming that Coretec Group takes on the existing debt without modifying its terms, it would mean that Core Optics' liabilities are absorbed into Coretec Group's financial structure. This could impact Coretec Group's overall valuation and financial health, which in turn could influence the negotiation of the compensation package for the owners of Core Optics.

If Core Optics has a significant amount of debt, Coretec Group may need to issue fewer shares to the owners of Core Optics as compensation, as the assumption of debt would already represent a form of consideration in the merger transaction. Conversely, if the debt load is substantial and Coretec Group agrees to assume it, the issuance of shares may still be significant, but it would depend on various factors including the valuation of Core Optics, the terms of the debt, and the negotiation between the parties involved.

In any case, the treatment of existing debt in the merger negotiations can have implications for the overall structure and terms of the deal, and it would likely be a key aspect of the discussions between Coretec Group and the owners of Core Optics.