AEROX: What do they mean by the language included in the share exchange agreement was drafted long before the stock structure of the post acuisition public company was known? Did they not do proper due dilegence on this?
There may have been an insufficient amount shares to consummate a share exchange?
This sounds shady to me. What is the deal?
Franchise Capital Corporation (PINKSHEETS: FCCN), which recently closed its acquisition of Aero Exhaust, Inc., a world leader in performance exhaust airflow technology and NASCAR Performance Partner, today issued a brief statement from management addressing language that was included in the share exchange agreement between Aero Exhaust and Franchise Capital regarding a potential future reverse split.
"The language included in the share exchange agreement was drafted long before the stock structure of the post-acquisition public company was known," stated Bryan Hunsaker, chief executive officer of Franchise Capital and Aero Exhaust. "It allowed for the fact that there might have been an insufficient number of shares to consummate the share exchange transaction, so language was included that indicated that management intended to pursue a reverse stock split soon after the acquisition closed. Given the current structure of the company, management has no plans to pursue a reverse stock split in the foreseeable future.
AI
