mehitable here IMO is an adequate reply and one possible scenario, the guys that own the company can increase the o/s at any time they want after the merger takes place. They can allocate themselves prefered shares that give them a much higher % of the company if they want.
If they have big plans for the Company and want to play in the big markets (NAS) it is a good idea to keep the float as low as possible in the meantime, to establish high PPs ie $3 - $7.
From what I know the float is about 5m and if the revenue numbers that have been discussed for one club and future plans for the business are close to being accurate then they could hit those PP levels.
If they want to expand in the future and raise capital via the markets it is better doing it with high PPs and in a higher exchange.
As I said this might be one way that they play it.
Just my thoughts, might be wrong might be right.
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