You buy a company by issuing stock. The company being bought gets Preferred shares of TALK, equalling "85% of the common shares of the company, fully diluted." Which means what was TALK now owns 15% of the new, liquid, producing company.
Could be wrong, but I am going to gamble that most will trade this to .001 then it could get pumped and pop to .003 and then you never know if it heads to a penny? Just saying could happen just as much as your doomsday scenario.