sub......A reverse merger is basically a reverse split with legs. Our shares are still reversed, only it's even easier for them to get away from us.
Let's say we merge with a company, but the new company wants to clean up our overabundance of shares situation. They could do a 1:1000 reverse merge into this new company, and the result would be that all shareholders would have that many fewer shares of the new company(example: 1,000,000 shares would turn into 1,000 shares of the new company). This would have almost the same result as a reverse split. It would divide the amount of shares existing by 1,000, increase our share price by 1,000 and then move us into this new company.
Now unfortunately, it doesn't stop there. Now we move to this new company, and provided it already is publicly traded, we take on their shares and shareholders that are already existing. This would further dilute our stock, however, put the merging company presumably in a better situation in regards to us.
If we merge into a privately trading company, the shares already issued to these insiders can basically be whatever they want them to be.
Normally, a merge of companies is designed to be fair and equitable to both the acquirer and the acquiree, and in most cases, the company being acquired moves in price far greater than the company doing the acquiring, which could possibly explain the drop in UCAD today if they are in fact getting involved with us. However, when talking pennies and pink sheet stocks, especially those from Nevada, rules seem to mean absolutely nothing. So take all the above info with a grain of salt. Hopefully, this made some sense and I didn't confuse you too much.
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