Okay, I just reread the last PR concerning the reverse split and merger.
excerpt:
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 and, in the
interim, the shares could trade in parity, at the same ratio.
each share of Enhanced Services stock will be exchanged for one share of Zulu-tek stock
Let's say these two stocks are pairs of pants. I received (owned) the size ESVS for Christmas and returned them to the store EXCHANGING them for the size ZULU that I liked.
You with me so far?
Since I made the exchange just like the PR said, the ESVS exchanged for the ZULU, I would in the end have ZULU correct? They are exchanging ESVS for ZULU. ZULU will be what everyone will have in the end according to the PR that the Company put out.
The PR also said that after the reverse split the stocks could trade in parity (i.e. same price). This to me means that both stocks will continue to trade until the ESVS shareholders meeting. Right? The stocks will still be trading next week unless they have the shareholders meeting on Monday.
For the record as proof of my thoughts based on information provided by the company, I am posting the following:
I will possibly tomorrow, buy a bunch of ZULU stock knowing per the company PR that the stock (ZULU) will be reverse split at a ratio of 10:1. Also knowing per the PR that when the two companies finally merge after the ESVS shareholders meeting, I will still own ZULU stock because the ESVS stock is being exchanged for the ZULU (everyone that owns ESVS stock will be exchanging it for ZULU stock). There will be no more ESVS stock after the merger per the PR. In the time between the Reverse Split and the merger the stocks will continue to trade as they have to this point in time.
If something else happens, such as ZULU being exchanged for ESVS and ESVS ending up being the resultant stock, or the stocks cease to trade next week, I will feel like I have been lead astray.
Does anyone else agree with me?
The above post is for verification of my thoughts and intentions in the event verification is necessary.
I would advise anyone else who assumes this to do the same.
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