eMax Holdings, Inc. (fka EMXC)

[retiredanalyst]

I have a question and perhaps someone here can answer it. According to the recently filed 8-K filed on June 23, 2011, MPIX has agreed to pay $40 million in their securities to acquire eMax Media.

Now, MPIX has a total market cap of $367,700 as of 8-4-11. You can go to any financial website to check this fact. Given the fact that MPIX's total market cap is only $367,700, what makes you think the MPIX securities they are using for the transaction are actually worth $40 million? Now lets assume for my next question that the securities are indeed worth $40 million dollars.

Why would MPIX pay $40 million in securities to buy eMax Media Inc. when the total market capitalization of EMAX Holdings Corporation as of the close on 8-4-11 is valued at $3.67 million?

How does it make sense to pay $40 million in securities to buy just one of EMAX Holding Corporations assets, when they could buyout the entire company for $3.67 million?