Buzz Technologies (BZTG)

[Our-Street]

This news release brings up a very interesting conundrum. Previous announcements indicate that the HK IPO will only be for exchange shares with existing shareholders on a 1 for 1 basis so at the end of the IPO there will still only be 300 million outstanding.

Yet here, there is an announcement that 25% of the total buyers are from institutions and high net worth individuals.

Anyone care to take a shot at explaining how there will be no dilution and only a stock swap yet the IPO is selling lots of shares?

Here is the quote from the article

"Buzz (OTC:BZTG) the main competitor to Yahoo, MSN, Google and Baidu in Asia is pleased to report that good progress continues toward the IPO. The company will provide further updates upon the finalization of contractual arrangements. The IPO will remain a 1 for 1 exchange from the USA Company to the new entity and no new stock will be issued. Shareholders will not be required to do anything as the change over will be an automated process.