Yes they issue new shares to equal 96%, same as every other merger....If you already have 300 million shares, how many new shares did they issue to equal 96%, answer 11.7 billion. It says share exchange because that company exchanges all their shares for shares of dpmd. A good merger the split is 70% to 30% or even 80/20, this is horrible they get 96% and shareholders only get 4%, that's a 96/4 split, not 80/20, not even 90/10.