Exobox Technologies Corp (EXBX)

[AskMrOwl]

Hi Z,

There really is only a couple possibilities here.

The only stock that trades is EXBX stock. It may change name, symbol, etc. but it is what trades and it is these shares that you currently own.

In a reverse merger situation, EXBX shares are issued to buy a percent of another company. If there really isn't anything in EXBX currently (which may be the case now), then the new company becomes defacto public through the transaction and essentially becomes EXBX.

In the second case I mentioned, you would get a stock dividend of the other company while keeping your EXBX stock. Then you have shares in both companies. EXBX continues to trade (although at the reverse split quantities) and your stock in the new company does not trade. Then, the other company can file an SB/2 to register the shares and initiate trading of the new stock under a different symbol.

I think those are really the only couple scenarios here.

The way I read the filing the first time it kind of made me assume it was the first case. I will go back and investigate further to see.

Why would any company do case II? Possibly to get its stock into enough hands to create a market for its equity. Possibly for marketing / public awareness. Other reasons? In case II, EXBX stockholders kind of get something for nothing. One thing I would be curious about if this is the case, the shares being issued for debt, are they issuing those shares to the EXBX debtholders or are they issuing them to the other company debholders? If to EXBX debtholders, why would they give up so much stock to the EXBX debtholders for little in return? Still need to figure this out some more.