Rennova Health Inc (RNVA)

[moe_the_gyp01]

What I have seen with similar reverse acquisitions, albeit with larger mergers, is that there will be one ticker representing the merged company and RNVA will go away. RNVA shareholders will receive pro-rata shares in FOXO. FOXO has recently revised its authorized share to 2,000,000,000 shares (see link). So there would be an in-substance reverse split of shares of RNVA preserving the relative ownership of RNVA common shareholders. There must first be the FOXO reverse split which has been stated to be for 1 for 5 to as much as 1 for 100 in order to comply with NYSE AM requirement of a minimum price of $3.00. To be sure, RNVA shareholders will NOT get a 1-for-1 exchange of FOXO for RNVA insofar as FOXO only has a total authorized share structure of 2 billion authorized shares. All of this is assuming the merger goes through as planned and is approved by the NYSE. Please refer to the For 14a filed by FOXO a few weeks ago for the reverse split announcement and amended share structure to increase the A/S from 500 mill to 2 billion and the RS ratio for FOXO shares.

Refer to items (1.) and (10.) for the reverse split and the revised A/S.

https://www.streetinsider.com/SEC+Filings/Form+PRE+14A+FOXO+TECHNOLOGIES+INC.+For%3A+Jul+31/23529966.html

Key elements:

The shareholders of the acquiring (smaller public) company typically exchange their shares for shares in the target (larger public) company. The exchange ratio determines how many shares of the target company they will receive for each share they own.

Ownership Shift: The shareholders of the acquiring company generally receive a smaller percentage of shares in the combined entity, leading to a transfer of control to the shareholders of the target company (which is the larger company).

Shares of the Target (Larger Public) Company:
Retention of Public Shares: The shares of the target company usually remain listed on the exchange, and the combined entity will trade under the target company’s ticker symbol.
Issuance of New Shares: New shares may be issued by the target company to the shareholders of the acquiring company to facilitate the share exchange.