The sad thing about pennystock companies acquiring other companies is usually it does not end well for the acquired company. They sometimes are very profitable companies that are well run but misinformed about how the penny stock market works. There are a few examples I could site from past experience but they would immediately be removed as off topic.
A pennystock company acquires a private company, hopefully profitable private company.The shareholders celebrate. Then the pennystock company squeezes all they can out of the company in terms of revenue, news, or an increase in the shell game. with the newly acquired companies spun off into new shells with hundreds of millions additional shares. The revenues from all the companies can then be shuffled from one shell to the next as needed. Once the shell hits the AS limit and they can no longer get anymore out of the company, it is folded inward and goes POOF! The former employees are left out of a job and the owner bagholding a bunch of worthless restricted and or unrestricted shares. This has been going on for years with different variations. The most important thing about the whole model is the dilutive nature of it creates the incentive to be the first to sell.
If you were the owner of the acquired company and your received a set number of shares for your company in lei of cash. You did so with the dream of multimillion dollar payout when your shares become unrestricted.Fat chance.
If you are the acquiring company you may have several other companies you acquired as well under similar terms. You basically control the shares.
You know that company A's acquired shares become unrestricted on such and such date your motivation might be to sell shares before the acquired company.
All the other acquired companies see what is happening and a race for the exits has been created. By now the floats are all bloated up into the hundreds of millions and the optimistic pumpers have taken profits and moved onto greener low float companies.
Being acquired by a pennystock company is not like being acquired by a NYSE company.
Does THCFinder know that they are on the hook for $750K worth of accrued salary to be paid to the CEO dating back to 2009? Once they become revenue positive he gets paid his salary. At first when I saw that I though how bizarre and stupid, now I see it as pure genius. A new twist to an old game. Cudos to Mr Davis. That payout of accrued salary was confirmed by Ty and several of the posters over the last few days. I'll dig up the posts so we can all review them. This is one of the ways how the revenues get sucked out of the acquired company. This model was perfected years ago by a very sharp guy nick named Ole Kevie Boy.
Rally on boyz!
AI
