Rediculous... It's obvious that you are clueless about mergers, reverse mergers, and share structure... I'm going over your post point by point to expose the weaknesses and mistakes you have made..
True it is a cheaper and easier route for a private company to simply merge into a public company.
You got got that right, good start...
Although the merger into a company that was in a completely different industry, with a different unsuccessful business model, makes it an oddball. What the previous business was, is totally irrelevant to taking a new business model into a shell and becoming that business... The old shares have no memory.
In this case we are seeing a reverse merger,
Yes, it's a reverse merger where the private company becomes the public company..
what this is really saying (in most cases) is that PAWS business model is not working, so they neeed to join forces with another company, usually at the expense of shareholders;
PAWS discontinued their business model over a year ago, of course it's not working... That's what it's all about... And... now you get a 25 million dollar company for preferred stock... This is a big WIN for common shareholders! This saved the common shareholders!
regardless of not having any debt consider the lack of revenue as well.
Of course there is no revenue, why do you think they are taking in the 25 million in new revenue... pointless...
The downside is that PAWS, lacking cold hard cash, will pay for the merger by offering 500,000 in preferred shares to PDC/Mesa. This stock is easy to come by for PAWS, they can simply issue more shares out of their A/S bucket which currently sits at 1.1billion which in turn increases the supply of shares in the float. Making it difficult for the PPS to move up in the future.
No, the PREFERRED shares are NOT in the outstanding shares and will not be in the float and will not effect the ability of the PPS to move at all... This shows a total lack of understanding by the author of share structure...
The other aspect is that PDC/Mesa has some inherent weakness, otherwise it would probably not allow itself to be "bought" with diluted shares from PAWS. This IMO Is the main reason to frown upon the reverse merger that is underway.
And they are projecting increase from 10 million in revenues to 25 million revenues.... Where's the weakness???? Don't just toss out such an accusation without telling the board about the weakness... Come on, what is the weakness??? They are going public in order to capitalize on the GROWTH that they are experiencing..... If shares are .03 now and run to .50, don't you think that could be why they are allowing themselves to be "bought"?
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