| Followers | 176 |
| Posts | 10917 |
| Boards Moderated | 0 |
| Alias Born | 07/31/2004 |
Sunday, August 16, 2009 8:58:05 PM
Forget all this - only trading a week or so stuff.
I will not forget this. This is Major stuff. This is a new company with a reverse acquisition. It would of been the old company with a reverse merger.
I would agree with you to "forget the only trading for a week stuff" on a reverse Merger. But this is a Reverse Acquisition.
Distinction between Mergers and Acquisitions
Although they are often uttered in the same breath and used as though they were synonymous, the terms merger and acquisition mean slightly different things.
When one company takes over another and clearly established itself as the new owner, the purchase is called an acquisition. From a legal point of view, the target company ceases to exist, the buyer "swallows" the business and the buyer's stock continues to be traded.
In the pure sense of the term, a merger happens when two firms, often of about the same size, agree to go forward as a single new company rather than remain separately owned and operated. This kind of action is more precisely referred to as a "merger of equals." Both companies' stocks are surrendered and new company stock is issued in its place. For example, both Daimler-Benz and Chrysler ceased to exist when the two firms merged, and a new company, DaimlerChrysler, was created.
http://www.investopedia.com/university/mergers/mergers1.asp
I will not forget this. This is Major stuff. This is a new company with a reverse acquisition. It would of been the old company with a reverse merger.
I would agree with you to "forget the only trading for a week stuff" on a reverse Merger. But this is a Reverse Acquisition.
Distinction between Mergers and Acquisitions
Although they are often uttered in the same breath and used as though they were synonymous, the terms merger and acquisition mean slightly different things.
When one company takes over another and clearly established itself as the new owner, the purchase is called an acquisition. From a legal point of view, the target company ceases to exist, the buyer "swallows" the business and the buyer's stock continues to be traded.
In the pure sense of the term, a merger happens when two firms, often of about the same size, agree to go forward as a single new company rather than remain separately owned and operated. This kind of action is more precisely referred to as a "merger of equals." Both companies' stocks are surrendered and new company stock is issued in its place. For example, both Daimler-Benz and Chrysler ceased to exist when the two firms merged, and a new company, DaimlerChrysler, was created.
http://www.investopedia.com/university/mergers/mergers1.asp

