Resonate Blends Inc (KOAN)

[pinkslipjunkie]

Yes indeed the SEC rules will apply...no choice!

Furthermore, this is something that nobody here knows or even considers exists. If people understood SEC rules and regulations and could read financial statements thoroughly, I wouldn't need to point this out. There is the '80% rule' for reverse triangular mergers. The '80% rule' refers to a provision under U.S. tax law (specifically Section 368(a)(2)(E) of the Internal Revenue Code) that outlines a requirement for a transaction to qualify as a tax-free reorganization, specifically in the context of a reverse triangular merger. I won't delve into details, but here's one requirement they must fulfill: After the merger, shareholders of the target company—in our case, EMGE—must receive stock of the acquiring corporation, KOAN, equal to at least 80% of the total value of the target company's (T's) stock that they owned before the merger.