Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Biotech / Medical : ADVA -- Ignore unavailable to you. Want to Upgrade?

To: Dan Hamilton who wrote (204)	1/8/2000 7:27:00 PM
From: EtTuBrute	Read Replies (2) \| Respond to of 242

Let me give everyone my humble opinion on what will happen. This is just my opinion, but based on DD and research, in my mind I think something similar to following will happen here: With reverse mergers the acquiring company often wants a vast majority of the stock, ie 80-90%. So even with a company like ADVA with only 6 million shares out, they need to reverse split and then issue shares so that the acquiring company can attain that 80% or better control level. So, just as an example, if we roll back ADVA to 600,000 shares, and remembering that 330,000 shares (leaving approx 270,000 outside control) shares will be sold via biotel (3.3 million reversed 10/1)to the acquiring party, that means that another 1.4 million shares would be issued to attain a 87% control level (2,000,000 - 270,000 = 1.73 million: 1,730,000/2,000,000 = 86.5%). The end result is we have a very viable publicly traded company at the $2-$3 level( depending on price on the day of the reverse split), and ONLY 2 million shares out, with only 270,000 in the float!! If the company coming is is LOOMCO, as it is the only one mentioned in the SEC filings, we have a whale of a company on our hands. Look at the introductory note to this thread with the view of only 2 million shares at at 270,000 shares in the float!! I have been involved in reverse mergers before, and dont like them. But I have never been involved in a reverse merger within a shell transaction. In regards to ADVA, I can see the reasoning behind it and understand why they are doing it. I like the way this one is looking. The question is, can you sell before the reverse split happens, and then buy back afterwards cheaper??? IMHO I dont believe so, because IMHO the reverse split will happen or be announced at the same time they announce the acquiring party. This isnt a situation where we have the same status quo after the reverse split, but what we have is a vastly improved company. As to when the consolidation is to take place, I believe it can happen at anytime, given that the Board has already approved of it. I have obviously been in this stock for some time sitting on my hands. My patience is about to be rewarded IMHO!!! Good luck to all of us!!!