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mightyducks

07/20/12 4:10 AM

#37243 RE: euc #37241

What I'm saying is that if we were going to merge into a shell company on the nasdaq small cap, it wouldnt matter if we had 14 million or 1.4billion shares.
in this case we would have done a 1:100 reverse.

So lets say we were gonna merge after the reverse with XYZ company and we get 1 share of XYZ for every share we own.

Instead we could just get one share of XYZ for every 100 shares we own and completely avoid fees and costs with a reverse split and simply change the rate at which we get the other companies shares.

It seems unnecessary to take that step which is why I believe if we do reverse split, we would not reverse merge.

Also, the more I read the 8-K the more I believe that the reverse stock mention was just a provision in the contract and not the preview of something, but we will see.