For a moment we will discard all of the allegations of impropreity and assume that all is legit here and look at this rationally.
A reverse merger onto the Nasdaq would be very dilutive to current common shareholders and here is why.
Management doesn't have a very large common share position in this stock and controls the company through preferred.
Unless you think they would be willing to relinquish their control of the preferred here and walk away with very little, any reverse merger terms would likely be set up to convert their preferred into a very large common equity stake which would dilute current shareholders far beyond anything they might expect.
Metter and Moskowitz are not going to give this company to a group of penny stock speculators. Right now, they are using penny stock speculators to finance the whole operation and that's probably about as much use for everyone as they are going to have.
A reverse merger would most likely be a nuke option for current common holders and is certainly not something common holders should be hopefully anticipating.
OR, we could see incredible revenues off spongebob in major retailers, a reverse merger on to the NASD, etc. yes, i agree support numbers would be out the window.
We are apt to shut our eyes against a painful truth... For my part, I am willing to know the whole truth; to know the worst; and to provide for it. --Patrick Henry, Patriot and Hero of the American Revolution
