This is what was stated first.
Re: Perfectstorm post# 205601 Post # of 206249
What I believe they did was a private placement, however, the shares placed must go through a registration process before they can be traded.
A Reverse Merger is a transaction where by the private company shareholders may gain control of a public company by merging it in with their private company. The private company shareholders receive a substantial majority of the shares of the public company (normally 85% to 90% or more) and the control of the board of directors. The transaction can be accomplished in as little as two weeks, resulting in the private company becoming a public company. The transaction does not go through a review process with state and federal regulators because the public company has already completed the process. The transaction involves the private and shell company exchanging information on each other, negotiating the merger terms, and signing a share exchange agreement. At the closing the public shell company issues a substantial majority of its shares and the board control to the shareholders of the private company. The private company shareholders pay for the shell and contribute their private company shares to the shell company and the private company is now public.
As always your own DD is required.
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Sure we thought a forward was coming because of the SOS as nobody knew how many shares the private company had. If they only had 500,000,000 private shares added to ours, it would have been a 3 to 1 with 6 bil authorized.
Nobody knew what they had. Now we know. Big deal
As always
Your own DD is required.
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