I asked the following question to Donald Steinmann, the Ask the Expert on the Bobz Forum: bobz.com
In the past, I've found his answers most helpful. Please review my question (see below) in order to ascertain that I've posed it correctly. You might also begin checking into the Bobz forum for his answer. Here 'tis!
QUESTION:
ZULU (Formerly NETZ) and ESVS Merger
PartyTime
MWeddle752@aol.com
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Hi Donald,
You answered some questions a few months ago and I found your response
most helpful.ÿ Here's another one for you.
Zulu-tek is an OTC BB stock (47,000,000 @ .50 = $23,500,000--market cap)
and ESVS is a Nasdaq stock (1,131,474 @ $6.00 = $6,788,844--market
cap).ÿ
These companies intend to merge into one in order to compete in the
electronic commererce/online advertising industry.ÿ Zulu wants to go
after the recently IPO'd Doubleclick, the sector leader.
In an effort to stabilize both Zulu and ESVS there's a 50 million dollar
private placement, including a stock swap of the two companies.ÿ As I
understand it, Zulu now owns 80% of ESVS; while ESVS now owns 20% of
Zulu.ÿ
Once Zulu's audited report is given to ESVS and shareholders from both
companies provide approval, the merger will take place thereby affirming
the Nasdaq listing.ÿ I own over 10K shares.ÿ What will happen for both
Zulu and ESVS shareholders?
Thank you. |
