MediaG3 (MDGC)

[nole92]

This $70 million acquisition boggles my mind.

How does a company in debt, with no products and no revenue for years announce an acquisition of $70 million???

I know...it's not real money, it's $70 million of stock...or is it?
At current market value, $70 million in stock would equal 52,500,000,000 shares of dilution! That's 52.5 Billion shares diluting current investors stock value to 1/36 of what it is worth today. If you own $36,000 worth of stock, it would be worth $1000 after the deal was done at current market value.

MDGC has a market cap of $2 million, a negative EPS and they announce an acquisition for $70 million of stock???

But wait...

This is how a legit acquisition would go down, but there's good news for shareholders! Val is trying to be sneaky and say the deal is worth $70 million but then throws in "$70 million at $0.30/share." This is a total scam move saying a deal is worth $70 million at a share price of 160X times the current market value. That would equal 233M of shares, or a current market value of $443,000, not $70 million. The good news for shareholders is that it's only about 15% dilution if the deal goes through. That $36,000 investor would only lose about $5,000 of value.

So, the PR should read something like this:

BOISE, Idaho, Aug. 8, 2012 /PRNewswire/ -- MediaG3, Inc., (OTCPK: MDGC), a provider of wireless broadband Internet solutions today announced the company has signed a definitive agreement to acquire privately held, HEXA-2 Corporation for $443,000 in an all-stock transaction. The conversion price is set at current market value of $0.0019 per share of MediaG3 stock.

Good luck!