This is how I envision a RM. Hypothetically of course...CYGX announces a merger with a private co. Stockholder vote is then required. NVF along with a few major stockholders...add a name here...have gained controlling interest...which would explain the rise in the shareprice. They vote for the merger and a new company is formed. Lets still call it CYGX or whatever. Everything that Cowsert has promised still can happen.. the lab...moving to NY..listing on the NASDQ..Now the devil in the details. New stock has to be issued and most likely a reverse split to value the shareprice adjusted with the equity that the private co. brought to the table. NVF now has a way to get out of its venture with the private co. by selling its new public shares. I believe there is a time period required before they can start dumping. In anycase..we know very little about the private co. because they are not required to disclose their financials. They might have milestones that look great to the average investor which would help drive up the shareprice for NVF to recoup some of their invested money.....All of this is speculation of course. The reason it is called a RM is the private co. is acquiring the public co. and it can go public without a lengthy process. The examples are on the link I have provided in my last post.
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