Forum Mobile Inc. (FRMB)

[Morpheous2000]

Another 'oddity' here. An important one:

Chardan Capital LLC, the investment bankers for the transaction, is going to be receive RESTRICTED stock in payment for its fees.

Section 5.16
Lock-Up Period . FRMB, Chardan Capital, and MKHD Controlling Shareholders holding at least 51% of MKHD share capital prior to Closing agree to a lock-up period of 180 days following the Closing, during which time they shall not be allowed to sell more than 10% of their respective holdings in MKHD as of the Closing (the “ Lock-Up Period ”) and no more than 2% at any given month during the Lock-Up Period. FRMB, Chardan Capital and MKHD Controlling Shareholders holding at least 51% of MKHD share capital prior to closing, further agree to execute such agreements as may be reasonably requested by FRMB in connection with such Lock Up Period.

In the typical transaction, the investment banker would take UNrestricted stock, at a 7% discount to the market price and collect his fee as he sold those shares back into the open market.

So what investment banker on earth would agree to accept RESTRICTED stock as payment of its fees? Stock that he couldn't sell back into the open market?

Wow!

There is soooooooooooooooo much more than meets the eye in this trade.