A Reverse Merger allows a privately held company to go public by acquiring a controlling interest in, and merging with, a public operating or public shell company.
COMBINED COMPANY TO ACHIEVE SIGNIFICANT REVENUE AND EARNINGS GROWTH
As of December 31, 2015, Adaptive Medias had approximately $52 million in net operating loss carryforwards (NOL), which the Company believes much if not all will be applicable to offset the tax liabilities of the combined company going forward for a prospective cash value of $15.6 million.
Accordingly, these NOLs are expected to significantly increase the combined company’s earnings and earnings per share immediately.
TERMS OF MERGER
Under the terms of the Letter of Intent, Adaptive Medias will pay AdSupply
$8 million in cash and newly issued restricted common stock such that