Green Cures and Botanical Distribution Inc (GRCU)

[Michel]

http://www.hotstocked.com/article/3536/triton-distribution-systems-inc-pink-ttdz-loi.html

Triton Distribution Systems Inc (PINK:TTDZ, TTDZ message board) stock lost some ground after the company announced the shareholders of Advance Gold Technology agreed to sell 51% control of the company to TTDZ last Friday. The price collapse demonstrates that traders hesitate to acknowledge the ongoing events.

TTDZ share price lost over 56% since this monday, when the news on merger approval spread out. The selling pressure might have come due to the lack of information provided in the press releases. Those investors that were leaving the boat also had favorable conditions as the stock lately traded with improved liquidity.

1Triton_logo.jpgThe acquisition will be carried out by paying 20 million restricted shares for the equity of AGT. Although the valuation of those shares wasn't disclosed, it should somewhat relate to the current market price per share, and that calculates to mere $176 thousand, at 0.0088 PPS, for this reverse merger.

AGT is a company shrouded in mystery. According to the press releases, it was only recently formed in the US. The business is stated to have 35 million in revenues calculated for 2010 along with $25 million worth of equipment.

However, AGT is not on Delaware secretary of state corporations list and their official website provides very little useful information. In fact the website domain was only registered on December 10, 2010, shortly after the first announcement relating to the would be merger.

The letter of intent for this acquisition was announced on December 9, sending the stock price up, even though the details looked uncertain at the moment. With the acquisition now seemingly at hand, the price is also affected by redistribution of shares among stockholders reacting to the event.