American Green Inc (ERBB)

[neilbolton]

"...the merger should not take more than about three months, hopefully four months at the outside."

Hopefully it will be in that timeframe. But I think it is extremely important that they publicize the final terms of the merger as soon as they are decided, even though there may be a few months more needed to complete the filings/paperwork etc.

I think one of the factors holding down the share price right now is the uncertainty of which of MMXT or SCMI to buy. The investor has to deal with these types of decisions....

SCMI may seem a better buy than MMXT because it is slighly lower in price, but is the price delta worth the risk that either the merger doesn't go ahead or that it might be on a more than 1:1 ratio.

Could the risk to MMXT be greater than to SCMI if the merger doesn't go ahead. My reading of the terms of the agreement is that SunnComm can withdraw the exclusive agreement at any time. So if the merger doesn't go ahead, could SunnComm also decide that MMXT has fulfilled its purpose and is no longer worth keeping.

MMXT has fallen faster than SCMI, should I hold out until it is less than SCMI.

There are many more 'decisions' like this confronting the investor. I'm not even suggesting that the first two above are likely, but investors must be assuming some probability that the merger may not go ahead or go ahead on slighly less favorable terms to SCMI to account for its lower SP since the "suggested" terms of the merger were announced.

The market hates uncertainty and until the final terms are announced with just the paperwork to complete, there will be this cloud hanging over the SP of both MMXT and SCMI.