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Gold/Mining/Energy : Meteor Technologies -- Ignore unavailable to you. Want to Upgrade?

To: Boolish who wrote (1292)	2/24/2000 10:58:00 PM
From: Boolish	Read Replies (1) \| Respond to of 2127

Description of a reverse take over. Does anyone feel this is logical. A common financing method that has both utility and value in certain cases is the reverse takeover of an existing public company. In this financing strategy, a privately-held company conducts a private placement of its common stock and then immediately combines with an existing public company in a transaction where the shareholders of the privately-held company exchange their private company shares for newly issued stock of the public company. The public company may be in a related business or may have little or no assets. Due to the large number of public company shares that are customarily issued to shareholders of the privately-held company, those shareholders end up with a controlling interest in the public company and are then free to appoint their own slate of officers and directors. Since the original shareholders of the private company obtain control, the term reverse takeover applies.