Replies to post #100830 on Protagenic Therapeutics Inc. (PTIX)

[RoagTrader]

Read it again.

The safe harbor does not apply to forward-looking statements made in connection with an initial public offering, a tender offer, or a partnership offering.

[buckhunter102001]

But they did not announce "an initial public offering, a tender offer, or a partnership offering" through the PR. So how is a "roll up" or "going private" beneficial to shareholders.

They didn't announce a "roll up" or "going private" either...but here is how a roll up might apply and be beneficial in this case.

A Rollup (also "Roll-up" or "Roll up") is a technique used by investors (commonly private equity firms) where multiple small companies in the same market are acquired and merged. The principal aim of a rollup is to reduce costs through economies of scale. Rollups also have the effect of increasing the valuation multiples the business can command as it acquires greater scale. Rollups may also have the effect of rationalizing competition in crowded and fragmented markets, where there are often many small participants but room for only a few to succeed.

An investor faced with an opportunity to invest in two competing companies may reduce risk by simply investing in both and merging them. Rollups are often part of the shakeout and consolidation process during an economic downturn or as new market sectors begin to mature.

Sounds like our theory of combining Kenshoo and Atrinsic!!!

And sounds like combining companies INCREASES the valuation multiples