Okay... still good... if they can pull this off.
Current shares will be detegistered and that is as expected, since it will cause this to stop trading in the market.
Now the questions are...
Do They re-issue new shares to replace the old shares and does this mean a CUSIP and Name Change or just a new CUSIP since the old shares would be defunk and void.
This will affect the shorts since a new CUSIP would be assigned to the new shares and the old shares are voided.
Second, as current shareholders do we still keep our share amount and exchange old for new as a 1 - 1 ratio?
Third, If there is no CUSIP or Name change but a registration of new common shares and exchanging the old... there could be a problem since the registration would be revoked for all classes of shares in the current company.
Thus I see a reapplication under a new CUSIP and Name will be forthcoming. Now, some could sell and get out as soon as they go Grey market and with hopes come back in later, however the question then would be at what price, considering the plan to merge is still on and this action above, news included, shows the intent.
I don't care what happens as along as they reissue shareholders new shares.
The problem for shorts is, if they sold shares to bring the pricing down, then at some point they will take their chances with not covering their short position. However, with the new CUSIP there would be no short sells to cover since those shares would be revoked. They win but lose also.
Most interesting situation but very promising if they, the company, will give current shareholders an exchange.
Best outcome for LAHO would be to request immediate revocation. The company will still exist, the merger we know will still exist, shareholders will still hold worthless shares...BUT you will have shares... Shorts would win but they have no shares. If a New CUSIP is issued, and chances they will be, those who have shares could get new shares 1 - 1. Shorts 1 - 0.
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