The fact Genesis Media Group was born out of a reverse merger is reason alone to be suspicious. More on this later.
I've looked into GNNX, and what little is out there is confusing.
E.G., The December PR #reply-4085240 indicated 10,990,000 shrs outstanding. Now, on their home page they show 19,346,000 shrs outstanding. This report can be viewed here #reply-4088841. My question is, how many shares are outstanding?
Now for the reverse merger. Someone mentioned GNNX had 19,346,000 shrs restricted. Most of these shrs probably belong to the guy who provided the shell. When do these shares begin trading?
The problem with reverse mergers is that they are usually accompanied by dilution, like those 19 million shrs. This dilution adds nothing to the company's assets. Its one hell of a cost the company pays to go public compared to the traditional IPO. So why pay it. Well, reverse mergers occur sometimes because a company can't go public any other way, and there in lies the reason for concern.
Also, were owners of Media Group holding stock and options at the time of the merger and what ratio did these converted into GNNX?
Anyway, folks here seem to be doing a good job reviewing GNNX. I just wanted to add more fuel to the fire. |
