Replies to post #1344 on Outfront Companies (OTFT)

[foodeanie]

you have made the asumtion that the shell is owned by the stock holders is this the case with mira?

[MBA in Pittsburgh]

Posted by: OTC_Guru Date: Friday, July 10, 2009 2:24:08 PM
In reply to: mrs trader who wrote msg# 1341 Post # of 1347

Whoever "told" you this obviously has no understanding of the mechanics of a reverse merger.

"In a reverse merger, the original public company (MIRA), commonly known as a "shell company," has value because of its publicly traded status. The shell company is generally recapitalized and issues shares to acquire the private company, giving shareholders and management of the private company (Sam Abecassis) majority control of the newly formed public company."

Source: http://invest-faq.com/articles/stock-reverse-merger.html

___________________________________________________________
AGREED. THE PUBLIC SHELL IS STILL LIABLE TO ITS JUDGMENT CREDITORS. IT APPEARS THAT THE PERSONS WHO HAVE ACQUIRED THE SHELL ONLY BECOME CONCERNED ABOUT THE SHELL'S CREDITORS ONCE THE ACQUIRED SHELL BEGINS TO GENERATE FUNDS - not stock - FROM INVESTORS, LENDERS OR FROM ITS BUSINESS ENDEAVORS. That appears to have not happened in my case yet.
_________________________________________________________