Mobilepro Corp (fka MOBL)

[mike306oh]

Nasdaq Merger:

Cowboy,

"Could someone please explain, using an example, how a reverse merger works. Thanks in advance."

In his short notes to me (that I posted here) Jay (the CEO) was talking about a merger, and not a reverse merger. Sorry for the confusion.

Most of the time the reverse mergers use a shell company (that has no products, and are either dormant or troubled public companies). Example:

Cirmaker Industry Co. Ltd., a Taiwanese company specializing in developing and manufacturing telecommunication products, electronic equipment and PC and electronic components, signed a letter of intent in January to do a reverse merger with Comet Technology Inc., a Salt Lake City-based public shell.

MOBL is for sure not looking to do a R/M into a shell. Rather, (i) it might seek either a NAS company under treat of deslisting, or (ii) it might simply merge into a larger NAS company that already has good finances.

As for the first scenario, for example, Global Genomics Capital Inc., a private holding company with minority stakes in Blizzard Genomics Inc. and Psynomics Inc., said in mid-February that it would merge with CytRx Corp., an Atlanta-based drug researcher under threat of delisting from Nasdaq. After giving up 10 million shares of its common stock in the merger, CytRx will be renamed Global Genomics Inc. and will be run by Global's current chief executive, Steven Kriegsman.

At this time we can't anticipate what the merger mechanism will be. We only can speculate all kind of other scenarious. For instance, a possible scenario will be a buyout of MOBL by the supposed larger Telecom company. From what I gather this is not under consideration.

My opinion: The best (for us) scenario (and the one that I think is the the most probable), is that MOBL will merge into a larger (financialy sound) Telecom company, that for instance is looking to acquire the goodies MOBL has: VoIP, Wi-Fi, WiMAX, ZigBee, and so on. In any event, whatever shape and form it will take, the merger will for sure greatly improve our value here. Remember the CEO, and the others in his Mgmt. team have quite a few shares, hence they will go for the best solution that will increase their value. If they gain (and they have all the incentives to do so), we gain. As simple as that.

PS: Some people (over RB) are speculating that the merger discussion is in an advanced stage, and it might be out before the small cap conference on March 24th.

Mike