Right. It is a share for share swap according to what they have released so far.
but you do realize all that means is what it says. Share for Share. It does not specify if it will be XX number of shares for XX number of shares.
So until they officialy release the terms, there is no way of telling what the share exchange/swap ratio will be.
When most companies do mergers they announce for instance that company xyz will get 4.7 shares for every xx number of shares held of company bbb. People can then see what the aribitrage spread is meaning which company is getting the premium.
PAVC did not do this. They did not say it will be a 1 for 1 or a any other ratio. Until they do, all we know is it will be a share for share deal.
If it is a 1 for 1, IMO they will do as serfdom suggested earlier and do something to make the arbitrage spread more even. Something to alter the share structure/valuation/pps so that a premium may be given, but certainly not a 1 for 1 going from .12 a share to $1.50 a share. Maybe they forward split TCHH with a 10 for 1 which would add 10x to share structure and bring the PPS down to the .15 area which would then allow a 1 for 1? I dont know. There are many things they can do if they want to do a legit 1 for 1 swap. But once again, and I am not insulting anybody, but please use a little common sense. IMO, A PS/OTC company is not going to do a 1 for 1 with one company at .12 and the other at 1.50. Do PS/OTC companies tend to give away billions of dollars? If so, in this scenerio we would see 2 things happening due to the arbitrage spread on this supposed 1 for 1 deal. Alerts would be ringing on every traders desk alerting them to a 1000% spread on BUYING PAVC and people would be flocking to buy shares at .12 that will soon turn to $1.50 and TCHH would sell off as they can sell 50,000 shares of TCHH at $1.50 and then buy 10x the amount of PAVC for .12 or so and when the deal goes thru they have the same number of shares they had at $1.50.
Lets be realistic here. If people could buy 100 shares of stock xyz today for .12 or so and do nothing and then when deal is complete have 100 shares at $1.50, would you buy? I would and I dont know anybody that would not buy if that were truly the case. If you held TCHH, would you not sell at $1.50 and buy 10x the PAVC shares since they will turn in to the same number of shares at $1.50 by you doing nothing? I would and dont know anybody that would not sell TCHH at $1.50 and know they could buy 10x the amount of PAVC at .12 and it will turn in to TCHH at $1.50 on a 1 for 1 basis or a 1000+% arbitrage (Instant gain of billions of dollars that a PS/OTC company is giving away to any retailer holder/buyer that wants it?!?)
If it sounds too good to be true----GLTA/PR
((on a share for share basis))
