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Microcap & Penny Stocks : ICVI (now MTEI) -- Ignore unavailable to you. Want to Upgrade?

To: Lee N who wrote (219)	4/24/1998 2:18:00 PM
From: TraderGreg	Read Replies (2) \| Respond to of 11850

OK, if Company A buys out Company B and Bs people resign and get shares in A, that is a typical merger,right? In a reverse merger, Company A buys Company B, giving Company B people(if private)/shareholders, stock in Company A. Now Company Bs people/shareholders may actually have a controlling interest in the new company(Aplus B). In any event, as part of the deal, the acquiring company's management quits. And the acquireD people take over from the acquireRs. It is confusing I know. It is all planned in advance by both parties. Typically, a reverse merger is done when a public shell acquires an on-going viable company that is private. The private company then takes over the infrastructure and voila, instant public company. Private outfits do it to avoid costs/paperwork of going public on their own. TG