…why do you feel an RS is in order by MGTA? To get the post-merger share price well above the Nasdaq listing threshold of $1.00.
I have so many questions on this since DNTH is currently privately held, like what is their book value? You will be able to examine DNTH’s financials in MGTA’s SEC filings for the merger. However, unless you own MGTA in your real-world portfolio, it may not be worth the effort to try to acquire detailed knowledge of DNTH’s financials.
What will the listing price be? How will that be determined? There is no listing price. Other than a likely reverse split, one share of MGTA simply becomes one share of DNTH.
If the value of my MGTA position was $10,000 at the time of the NASDAQ ticker transition, do I then get roughly 21.3% in DNTH? The 21.3% equity stake in the merged company by existing MGTA shareholders in the aggregate is a separate matter. Your (hypothetical) $10,000 in MGTA becomes $10,000 in DNTH, subject to changes in the market price of MGTA based on how much (or how little) MGTA investors like the deal.
Will the de-listing and listing occur simultaneously? Yes. Other than a likely reverse split, the closing of the transaction is tantamount to a symbol change for existing MGTA shareholders.
I've only been investing for 45 years, but this is all new to me. Reverse-mergers with private biotech companies are actually pretty common. In the table at investorshub.advfn.com , scan down until you see the deals listed with the ® symbol. These are all reverse-mergers.
This seems like a pretty good deal from the MGTA side considering the SUSAR event in January. Agreed. In a typical reverse-merger, the “shell” company (MGTA in this instance) ends up with less than 20% equity in the merged company. |
