Hypothetically - say CVSU is worth $1 billion and FHAL is worth nothing. Say they both have 50 million shares.
So CVSU shares are worth $20 each and FHAL shares are worth nothing. When they merge, the FHAL shares are worth $10.
So CVSU shareholders traded $20 shares in for $10 shares.
It's that simple.
People should stop calling me an idiot, since I know much more about this than most of you. I have an MBA in Finance and Accounting, worked in Mergers and Acquisitions in NYC. Been trading for myself for 10 years.
LISTEN PEOPLE - you can make money if there is someone else who will pay more for the stock, but the clock is ticking on that strategy.