Marine Jet Technology Corp (fka mjet)

[dickmilde]

goose... About the reverse split.

The reverse split is required because the private company that is going public via the merger needs to own most of the outstanding shares. They do this by issuing a huge amount of shares to the new owners so that they have 95-96% ownership. Because existing shareholders have about 28 million shares the amount required to be issued is around 740 million. This would result in the current shareholders owning about the 3.8% that was stated in the announcement.

After the shares are issued do a 1 for 35 reverse split and you're back to around a comfortable 20 million outstanding. Current share holders get screwed in the process because you won't have very many shares left when it's done.
See the following links:
http://www.ragingbull.lycos.com/mboard/boards.cgi?board=MJET&read=84

http://www.sec.gov/Archives/edgar/data/1139683/000114420405008890/v015064_8k.txt



Dick Milde