what merger?
In March, Global Defense announced that it would conduct a so-called reverse merge with Nannaco (NNNC:OTC BB - commentary - research), a tiny Gig Harbor, Wash.-based surface cleaning company that is changing its business model. Global Defense said it had obtained a $10.6 million financing commitment from Cornell Capital, a New Jersey hedge fund, to finance the deal and permit the company to make further acquisitions. In the transaction, Global Defense essentially would acquire Nannaco, a move transforming the security company into a publicly traded entity.
But Paul Silverman, Global Defense's chief executive, said the deal with Nannaco has been called off and the company is looking for another merger partner. Silverman, however, said Global Defense has no interest in being acquired by Fortress America, even though McMillen has ties to both companies.
"We are really working at a different level,'' said Silverman.
He said Fortress America's objective is to buy a security business "that's throwing off lots of profits,'' not a relatively young concern like Global Defense.
Indeed, Global Defense's Web site shows that it's far from operating in the big leagues. The Arlington, Va., phone number listed on the company's Web site was out of service. There is no mention of McMillen being affiliated with Global Defense on the company's Web site.
That's something Silverman says he's got to fix.
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