A reverse merger is far worse on current shareholders than a reverse split - a reverse merger is designed to take out current shareholders.
The 8-K describes exactly how they are going to do it.
First, current NOHO shareholders receive 1 share of ACX stock for every 10,000 shares of NOHO stock.
But, then they state the the common shares of NOHO will account for 10% of the new ACX stock.
Someone was posting/boasting that they owned 100 million shares of NOHO. Here is how the reverse merger will effect their shares.
All of the shares that are now NOHO will represent 10% of the ACX shares - the 2.5 Billion NOHO shares will become 250,000 shares of ACX - and that will be 10% of the ACX shares.
Present shareholders will be reverse mergered into nothing of significance.
The 8-K states that ACX will have 250,000,000 total common shares and the NOHO 2,500,000,000 shares - will become 250,000 shares and that will be 10%.
So if someone owned 100,000,000 shares of NOHO - that would become 10,000 shares of ACX.
The 100,000,000 shares used to represent 4% of the total A/S of NOHO.
Now those 10,000 shares represent 0.004% of the A/S for ACX.
Shareholders have been screwed if there is a deal to do a reverse merger with the NOHO shell.
At the NOHO PPS of 0.0001 a 100 million shares is worth $10,000 - if you could find a buyer.
So, the 100,000,000 shares of NOHO would be worth $10 for the new company at the current price but it will change - but still be a sub-penny.
IG