Either I'm losing my mind or, I'm too dense or, we're just not communicating somehow.
QASP's current share structure... A/S & O/S = ~1.5B shares.
The proposed 4-for-1 R/S will reduce that 1.5B share count to 375mm (freely-tradeable) shares. Which, coincidently, is 25% of the former, pre-R/S share count.
Now... Where, oh where is CentaFlix going to get it's 1.125B (75%) restricted shares? THEY DON'T EXIST ANYMORE! Post R/S... QASP's A/S & O/S = 375mm shares. Unless QASP can issue an additional 1.125B new restricted shares for CentaFlix during the merger process. Can they? Who knows...? If they can... problem solved!
Then, there's a scenario similar to what Surf outlined: http://investorshub.advfn.com/boards/read_msg.aspx?message_id=60355482 The new Company can then divide their (1.5B ?) shares according to the Proposed Merger Agreement... ... 75% (restricted?) to CentaFlix; 25% to current QASP shareholders. The numbers work out well in that scenario, also.
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