Praxsyn Corp (PXYN)

[PlayInTheGreen]

True it is a cheaper and easier route for a private company to simply merge into a public company. Although the merger into a company that was in a completely different industry, with a different unsuccessful business model, makes it an oddball.

In this case we are seeing a reverse merger, what this is really saying (in most cases) is that PAWS business model is not working, so they neeed to join forces with another company, usually at the expense of shareholders; regardless of not having any debt consider the lack of revenue as well.

The downside is that PAWS, lacking cold hard cash, will pay for the merger by offering 500,000 in preferred shares to PDC/Mesa. This stock is easy to come by for PAWS, they can simply issue more shares out of their A/S bucket which currently sits at 1.1billion which in turn increases the supply of shares in the float. Making it difficult for the PPS to move up in the future.

The other aspect is that PDC/Mesa has some inherent weakness, otherwise it would probably not allow itself to be "bought" with diluted shares from PAWS. This IMO Is the main reason to frown upon the reverse merger that is underway.