THIS IS ONE COMPANY PURCHASING ANOTHER COMPANY/THE COMPANY'S PRODUCT... THERE IS NO MERGER!
Originally the two companies were supposed to merge. After the Nov 18th PR it was announced that XMDC would instead be purchasing the Bioharp. Now typically when one company purchases another company (and both companies are on the U.S. stock exchange) the company that is purchased their stock goes up and the company that is buying, their stock declines... I'm not sure how it works when a company buys another that is not on the exchange, but I assume it would be similar.
There is no reason to freak out that the stock is going down. IMO there is no real reason for it to go up until XMDC starts selling the BioHarp (WHICH ACCORDING TO TODAYS PR THEY NOW OWN). Anyone buying now is still buying on speculation that XMDC will be able to sell this thing.
We're not out of the woods yet, but we can definitely see the green pastures behind the trees. Acquiring this thing was our biggest hurdle and now the small hurdle is to make sure we rack up some sales with it (which we can do in other countries right away and eventually in the US with FDA approval). That's when this PPS will really take off and IMO that won't be till mid January of 2010 the earliest.
STEALING THE PR QUOTES FROM MLR Lite's post it says exactly what everyone has been saying to those asking about the merger. Nov 18th NO MERGER, NOW IT'S A PURCHASE Dec 9th ASSET PURCHASE COMPLETE
:
Nov 18:
The company issued the following statement: "We're proud to announce XTend has finished their meetings in Korea with BioHarp. While we originally intended to just merge operations, XTend feels it will be in the best interest to purchase the assets wherein the newly merged entity would own the BioHarp medical device in its entirety
Today:
The company released the following statement, "Mr. Lee, Mr. Friedman, and I are pleased to announce the completion of the asset purchase agreement between XTend Medical and BioHarp, Korea. The process took a little longer than anticipated but we're extremely excited to finalize this agreement and work together with Mr. Lee to begin the manufacturing, marketing, and sales of the BioHarp device
