To answer your question: This is a 50/50 play in my book. You should play only with little money you can either loose or quadruple.
The Bad 50%:
The company is in financial trouble and is going down the drain to begin with, this deal is their final bet.
The debt and liability is big, so even if a reverse merger does happen, the stock will reverse split so much it will make you blind.
The CEO might have released this PR to dilute all he can before closing shop (in this case you folks will run for the hills before it hits 0.0001).
The deal can take a long time and this will trade sideways for a while.
The Good 50%
This is a fully reporting OTC company and not a pinksheet.
The 8k was indeed filed with the SEC
There is a $230,000 deposit made to initiate the merger(It would be a very dumb idea to report a false deposit to the SEC via 8k form)
The mentioned FHH Sino company allegedly has lotsa cash.
The chart is looking very strong with the 2 day consolidation and holding the major 0.0005 support as expected.
The last but not least: If CEO releases any positive news come next week, this will break 0.002 and head up rather quickly.
Just remember, this is a R/M anticipation play, don't put your hard earned money thinking you're investing in a fuel tank storage company in China.
All of this being said: play with little extra cash and lock in profits whenever you can, do not listen to predictions of a penny or two pennies, not gonna happen.
All in my opinion, if you disagree, all constructive criticism is welcome.
AI
