iVoice, Inc.(fka IVOI)

[WinkieBBS]

Interesting. I just read up on what a Reverse Merger is. So IVOI vanishes (?) then becomes HYDRA - so what about the IVOI shareholders......do they vanish as well or have their IVOI shares become HYDRA shares, hence the 1 to 1 ratio???? This boggles the mind (mine at least!) Perhaps this is the reason buyers are in the 2's, thinking they will not be affected by an r/s????

A reverse merger (“RM”) is a non-traditional method of going public. Instead of hiring an underwriter to market and sell the company’s shares in an initial public offering (“IPO”), a private operating company works with a “shell promoter” to locate a suitable non-operating or shell public company.1 The private operating company then merges with the shell company (or a newly-formed subsidiary of the shell company).2 In the merger, the operating company shareholders are issued a majority stake in the shell company in exchange for their operating company shares.3 Post-merger, the shell company contains the assets and liabilities of the operating company and is controlled by the former operating company shareholders.4 The shell company’s name is changed to the name of the operating company, its directors and officers are replaced by the directors and officers of the operating company,5 and its shares continue to trade on whichever stock market they were trading prior to the merger.6 Hence, the operating company’s business is still controlled by the same group of shareholders and managed by the same directors and officers, but it is now contained within a public company. In effect, the operating company has succeeded to the shell company’s public status and is therefore now public