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TenKay

05/01/19 4:54 PM

#80269 RE: GoldMember #80267

The “threat” is to legacy shareholders of the public entity.

“VYST” is simply a vehicle to bring Rotman’s public. It has no inherent value beyond what any reporting shell would have. While it may seem like the “merger” will be a windfall for current shareholders as they will have a piece of Rotman’s now...the reality will be that the piece will ultimately be very small.

If he does this RM with convertible preferred stock...it will ultimately lead to existing common shareholders getting wiped out.

I have seen this play out far too many times.

The only good news is VYST will likely be a good trade as the narrative plays out. Reverse mergers can create hype and excitement but usually only because many don’t fully understand where they end up.