SurgLine International Inc (SGLN)

[JustAnotherPenny]

mm107 Share Thursday, August 04, 2011 10:43:35 AM
Re: Bill2 post# 19041 Post # of 19072

...I dont understand what people dont get, if they REVERSE MERGER, THE SHARES will be Accounted For and cleaned up if needed.

a REVERSE SPLIT is TO JUST to reduce the OS, a MERGER is to clean up the structure for the new company!

So tell me how they get 590M outstanding shares to 40M shares before closing date as stated before? So you are telling me only 40M shares are owned? Owned shares just dont get removed they are R/S and then the R/M happens (fact). How do they get accounted for when you will have 200M shares after R/M of which Surgline will own 140M shares and existing CNUV common shareholders will own 40M. Like i said earily you think only 40M shares are owned to not have to do an R/S? Just answer how they get from 590 to 40M before close with a technical answer. I am guessing you cant. creditability, laughable! (all in the 8k aug 1,2011)


More information on a Reverse Merger:

Drawbacks

Reverse takeovers always come with some history and some shareholders. Sometimes this history can be bad and manifest itself in the form of currently sloppy records, pending lawsuits and other unforeseen liabilities. Additionally, these shells may sometimes come with angry or deceitful shareholders who are anxious to "dump" their stock at the first chance they get.

One way the acquiring or surviving company can safeguard against the "dump" after the takeover is consummated, is by requiring a lockup on the shares owned by the group they are purchasing the public shell from. Other shareholders that have held stock as investors in the company being acquired pose no threat in a dump scenario because the number of shares they hold is not significant and, unfortunately for them, they are likely to have the number of shares they own reduced by a reverse stock split that is not an uncommon part of a reverse takeover.

On June 9, 2011, the United States Securities and Exchange Commission issued an investor bulletin cautioning investors about investing in reverse mergers, stating that they may be prone to fraud and other abuses.[1] [2]

Reverse mergers may have other drawbacks. Private-company CEO's may be naive and inexperienced in the world of publicly traded companies unless they have past experience as an officer or director of a public company. In additon. reverse merger transactions only introduce liquidity to a previously private stock if there is bona fide public interest in the company. A comprehensive investor relations and investor marketing program may be an indirect cost of a reverse merger.
Source: http://en.wikipedia.org/wiki/Reverse_takeover