Private companies using reverse process to go public Message Board

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Microcap & Penny Stocks : Private companies using reverse process to go public

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To: Mark Riley who wrote (34)	5/5/1998 9:22:00 PM
From: Chloe R	Read Replies (1) of 62

Mark, I wouldn't presume and answer for James, but I'd like to offer my opinion if I may. At this point in time with a stock worth sub-pennies, ANY news of a reverse merger is GREAT, GREAT news! You basically had an instrument that was worth practically NOTHING, that now has the potential of actually being worth SOMETHING. The shell shares have already progressed to a pretty good initial public market cap for the new merged company. MCYX negotiated what seems like, on the surface, a pretty good deal. Again, most of the shells end up with 3% to 15% of the shares in the new company. MCYX's 12% is definitely near the top of the spectrum and means you suffer less of a dilution. I don't know what your cost basis is, nor do I know didley about the private company being merged in, but I'd hold my friend, you have nothing to lose now and everything to gain! These transactions usually involve a LOT of due diligence. So you can be reasonably assured that you haven't just merged with a dud. Clo

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