ARCC update....
I tried to post this earlier today, but my puter has the hiccups.
Last August, Allied Riser Communications, ARCC,(NASDAQ) announced tentative plans to merge with Cognet Communications, a private company.
At that time, they gave no details and made no definite statements.
Also in August, Cogent filed a S-4/A for the proposed merger.
Now, they have announced that on January 31, there will be a special shareholders meeting to vote on the merger.
In August, ARCC was trading at .12 and closed Friday at .17
Now, here's where it gets sticky...
In the last few months the NASDAQ notified ARCC that delisting proceedings would begin, but amended that because of the proposed merger.
The NAZ extended the deadline until Januart 4, IF ARCC could complete the merger by that time.
That deadline has come and gone, but, realistically, if they can get the merger done before delisting is announced, it probably won't happen.
But, it appears that ARCC is having big problems....ie: going broke.
Hewlett Packard has filed a lawsuit for payment for millions of dollares worth of equipment ordered but not paid for.
And, the final death blow may have come Friday, Jan 11.
13 Institutional bond holders have filed an injunction to halt merger proceedings.
It appears that the merger will come to a scretching halt, but, if by some miracle it takes place, it could be a very good play.
Cogent has announced that they intend to do a 1:10 reverse split of their privately held shares(unknown value) and there will be a share exchange of ARCC and Cogent shares with Cogent being the surviving company.
The R/S is, obviously, to bring the share price back up over a dollar to keep the NAZ listing.
At this time, the only unknown facts are; what is the current Cogent share value and what the exchange rate will be?
I expect those facts to come out by or because of the Jan 31 meeting..........Maybe, before then, in a PR......
IMO, it would be wise to watch closely.........
"Aim low Sheriff...They're ride'n snakes"
as usual...JMHO..SMD
