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VeeYou

01/17/14 1:22 AM

#72371 RE: tqipres #72369

If you research reverse mergers, you will find the answer. This is a textbook reverse merger. There is often a R/S with a reverse merger, which is often followed by issuance of new shares to shareholders of the formerly private enterprise. While Novacab wasn't public before, they still had investors/shareholders; and this probably includes some of the board/staff. This isn't a bad thing necessarily, unless they all decide to dump their shares immediately. I think we need to eschew our conclusion jumping at this time, but hope that in the meantime (while we wait for our shares) that this thing isn't driven into the ground.

RisingProfit

01/17/14 3:09 AM

#72373 RE: tqipres #72369

Private companies have shareholders too.
They just don´t trade on the markets. If Novacab was merging with SBRH they had to have some gain for their shareholders, after the merger.