Medite Cancer Diagnostics Inc (MDIT)

[VetteRanger]

Regardless of the ridiculous and unfounded rah rah continuously posted by IslandTrader, this actually is good news.

McCullough and cronies are giving up management and control to a company that has been around since 1978 and actually makes a profit.

I searched hard last night until I finally found a news story which confirmed that the CEO position will be filled by the Medite people ... Michael Ott will be President and COO and his wife (oddly Michaela) will be CEO. It's clear that Michael will be running the show. McCullough will be CFO and hopefully will be under close scrutiny.

Since CytoCore is "buying" Medite with 80% of their shares, obviously what is really happening is the new corporate structure for some reason wants the CytoCore name, and the CytoCore insiders are willing to give up control for the chance to finally make some money.

The math suggests that what's actually happening is Medite is willing to give up 20% to obtain the CytoCore name and properties. I think I prefer this to the flip side of the acquisition where our CytoCore stock would be have been converted to some (now eternally) undefined equivalent of Medite stock.

For those of us with substantial holdings in CytoCore, this may finally rekindle our long diminishing hopes for the CytoCore patent.

I'm going to guess that this deal effectively kills the latest proposed reverse split. As I sit it doesn't make any sense to do anything which would further dilute CytoCore stock ... which another reverse split would unquestionably have done. With an all stock purchase, it only makes sense to try to boost the value of the stock, not drive it down yet again.

http://www.bizjournals.com/orlando/news/2014/01/13/cytocore-to-acquire-orlandos-medite.html