'Sturgis'...Reverse split, agreed. reverse merger, when? If you say, "merged into a North Carolina corporation," your "cookie time" privileges will cease immediately!
That prospectus proposes to sell stock at "up to" 35 cents a share, whatever a 90% discount to market for the company that is running the sale for them (ie - subscribed to the shares). They're raising cash, and that is all.