Replies to post #21165 on Novation Holdings Inc. (NOHO)

[I-Glow]

How will NOHO boom when according to the 8-K filed - Registrant will merge with and into ACX Technologies, which will be the survivor in the merger.

And according to the 8-K there are a few other problems:

All outstanding convertible notes previously issued by Registrant will be converted into premerger common stock of Registrant immediately prior to the merger closing in accordance with the conversion provisions of each such convertible note, and then will be exchanged in the merger for common shares of ACX.

But here is the killer to current shareholders:

All outstanding fully diluted common shares of Registrant at the closing of the merger, including the common shares issued in the conversion of outstanding convertible promissory notes, will be
exchanged in the merger on the basis of one new, post-merger share of ACX common stock for each 10,000 pre-merger common shares of Registrant issued and outstanding, with any resulting fractional share being rounded up to the next whole number. The ACX common shares issuable in the merger to the pre-merger common shareholders of Registrant, including those common shareholders resulting from the pre-merger conversion of Registrant’s outstanding convertible promissory notes, will represent, collectively, ten percent of all of the ACX common stock issued and outstanding immediately upon the closing of the merger.

That is really bad news for the current shareholders.

1. First there will be a reverse split of 1:10,000 of the NOHO O/S

2. All of the NOHO O/S after the reverse split will account for only 10% of the post merger company.

Those two items effectively wipes out all current shareholders.

IG