Doesn't really have anything to do with 'red flags', the merging company is legit from my research.
This is more about World Financial Holding Group and their big ole F U to the existing shareholders with a 1000:1 r/s, when 10:1 would have been perfectly adequate.
That's what these guys do though, a r/s was always a consideration, 1000:1 I really didn't see that coming though.
Buyer beware if your in BEES, that's another one of theirs, very good chance you could get wiped out there as well.