Encore Energy Systems Inc (ENCS)

[drugmanrx]

I have a question for those of a logical mind concerning the following.


"BRIGHTON, MI - March 12, 2008
Encore Energy Systems (Pink Sheets: ENCS) announced today it will be acquired by Modern Technology Corp (Pink Sheets: MODC).

The terms include an offer to existing Encore shareholders of not less than $0.01 (One Cent) per share paid in a combination of MODC Common Stock or MODC Convertible Preferred Stock at the stockholders' option. Stockholders are not required to sell any shares and will not lose their ownership interest in Encore."

Why would a COMPANY who is going to give each shareholder at least a penny for it stock, issue over double the amount of new shares and sell them for 0.0002?

My answer, at the end of the day all you will own is worthless paper of two empty shells (ENCS and MODC), as Welch plans to abandon both companies and move on.

What is your answer?