Got me, PT. I agree with you. There IS no confusion: the ratio is 10:1.
Then why is the company seeking to clear-up the confusion that doesn't exist? And, in the process, creating more confusion?
"Zulu's President Keith Montgomery said, ''There has been some confusion regarding the pending transaction between Enhanced Services and Zulu-tek in the distribution of the Enhanced Common Stock to Zulu shareholders. It is in the best interest of its shareholders to effect the 1-for-10 reverse split at this time to clarify the Zulu-tek market and equity position.'' "
Maybe you should ask Keith Montgomery what the confusion was, and why this was necessary?
You see, before this new wrinkle, it was clear what would happen if the capital structure of either company changed - it would change the ratio appropriately.
But now, will that still hold? Will they do a 10:1 reverse split, and then have further adjustments if either one or both of the companies issues stock? That is not stated, and that's the new confusion.
Now, the 10:1 reverse split COULN'T really have anything to do with new OTCBB listing requirements?
Naaaawwwwww.
BTW, here's a new wrinkle to ponder:
"As a result of the reverse stock split, when the previously announced Enhanced Services (OTC: ESVS - news) and Zulu-tek transaction is completed, each share of Enhanced Services stock will be exchanged for one share of Zulu-tek stock "
Parse that carefully (guess we need the lawyers for this one! :) ) and tell me what it says. |
