Replies to post #9154 on KeyOn Communications Holdings, Inc. (fka KEYO)

[Poptech]

lesn: No.

An RTM is a stock swap deal, no cash is traded.

That is not what your original Forbes reference taught. So let’s start with the first glaring problem I mentioned:

However, at least 80% of the consideration must be paid in voting common or preferred stock of the acquirer...

So if Nantworks is worth $10 billion and KEYO pays $8 billion in stock consideration, KEYO is short $2 billion which must be paid is cash and assets by KEYO to Nantworks shareholders.

So that leaves the Reverse Merger crowd explaining where KEYO comes up with the $10 billion in stock and cash.

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