Re: Reverse Mergers......
To: Bald Eagle who wrote (41661)
From: ztect
Sunday, May 7, 2000 11:48 AM ET
No I don't think so....
For no reason whatsoever tsig could do a little run to
the 40 to 50 pre-split range. But assuming that doesn't happen and they split at
approximately these levels,
will they be able to maintain that post split price
let alone add value to meet nasdaq qualifying criteria?
Don't know, though another possibility is reverse
merging with a listed shell, or acquiring a listed company.
Theoretically tsig could acquire a listed clothing
company, for example, on the nasdaq, sell off all
the clothing assets, then apply for a name and symbol
change back to tsig.
Sound unreasonable? Look at the Rare Medium
story. Rare Medium prior to being known as Rare Medium
and listed as RRRR was known as ICC Technologies and
listed as ICGN. Was ICGN another internet company? No,
ICGN was an air conditioning company.
Click links for back ground:
Subject 2751
Subject 24792
Purchasing a non tech or another distress listed company,
then disposing of its remaining businesses, would be a quick
work around SEC listing requirements though it does
require a later name change. Purchasing a non-tech and/or
distress Nasdaq listed company would also be cheaper
than trying to purchase another tech company meaning less
dilution to acquire a non-performing asset.
Tsig also could purchase a synergistic NAZ listed
public company that would require more shares or cash
spent, but could also offset such dilution if the
asset were a performing one.
Anyway, what makes a reverse merger tenable regardless
of post rs share price is the access to capital, which
per the last press release has been increased over
three fold.
Thus the whole point, is that listing can occur more than one way due to amount
available and tsig's low burn rate.
The rs consolidates shares to also allow
for ample wiggle room without raising the authorized.
The obvious risk is that after consolidation, shares again
are pissed away, rather than spent acquiring companies and
personal that add to increased revenues per shares.
Whether or not this happens, I cannot project.
History may or may not be a good barometer but remember
the times they is a changin' and very quickly at that.
Plus without knowing any terms of any of the draw downs
of the $125 mill, we're all really just whistling dixie.
And I don't really think any of us want to do that
z
Message 13612571 |
