In 2008, ASYTQ had received an offer of $6.00 for its shares, but declined the offer, seeing it as not enough, and less than their shares true valuation.
If Crossing Automation's management, feels that the $6.00 that Asyst Technologies' board was offered by Aquest Systems Corp is adequate, the initial price for ASYTQ, in this "reverse merger", could be decided, and determined to be, $6.00 !!! __________________________________________________________________
Establishing The Initial Stock Price -
Once a "reverse merger" is completed, a broker/dealer (Market Maker)must decide to make a public market in the stock.
1.) The "market makers", in conjunction with the company, determine the initial price for the stock.
2.)Perceived value, the "sex appeal," track record and potential growth of the company usually have more to do with initial pricing than earnings multiples and current book values.
3.) Competent investor relations and supportive "market makers" as well as management’s ability to relate the company’s potential to investors are of key importance.
4.)Ultimately, the public market acceptance of the company will determine the market price for the stock.