Agreed Wayne...
But once this transition of management takes place, there will be new management calling the shots... its is better to put them on notice that we will give them a chance and support them as long as they do the same in return. Many times transitional management gets the idea out with the old and in with the new...
In this case I was trying to point out, this might not be such a great idea, or its very possible WOTD could find themselves in the condition of expending much of their energy doing damage control and trying to shore up a once strongly backed stock.... as opposed to concentrating on expansion and starting to generate revenue. Jack and CVIA shareholders have kept things togather, and are offering WOTD a chance to do just that...
WOTD should understand its been a long time since this stock has been in the black for many investors, Most all CVIA investors have been pretty beaten up over holding this stock, and its just a matter of how they proceed with this reverse merger issue if they keep the shareholder base intact or find themselves trying to find new investors, and the share price greatly reduced from where it once was. (even with NASDAC LISTING)
Rollups will work in certain cases, but in every case they have to have revenue, proven expansion plans and a strong shareholder base, other wise its just another reverse merger with the stock holders bolting for the door.
Now CVIA has assets and WOTD has assets (from what I can gather) this merger will pool the assets, so CVIA/WOTD should use these assets to first do an acquasition or 2 rather than putting the burden of a reverse merger on the current shareholders. I will guarantee you it is better to wait and do a reverse merger at .1 to .25 than a reverse merger at .02 to .08 or they may end up langaushing in the sub penny basement for some time to come, with the remaining share holders being hostile to say the least.
Not trying to scare anyone its just I feel someone might want to point this fact out, to the incoming management staff, just so they dont take the current investor base for granted.
KAA |
