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nobullhere

05/30/10 10:47 AM

#17812 RE: MindlessSelf #17810

Good question and here is the answer.

1-- SHARE EXCHANGE AGREEMENT: In pinks there are more share exchange agreements than buyouts. That means that the company could not get their POS trading so they give the public vehicle to another company (with a better line of BS) and keep a sh*tload of shares.

2-- BUYOUT: Ususally a buyout, if there is one, is for the pink vehicle (used to be called a shell)and usually the SELLING company sucks. If there is a buy/sell they settle on a cash price and then the CEO simply transfers his majority preferred and restricted common shares to new CEO. It's that simple.

3-- Buyout of O/S: A buyer will never buy the O/S with an inflated insane SS. Just a scam for a pump and dump. Complete and utter lie.