This recent reverse merger got taken down today on rumors of a 100-1 reverse split in their future. Someone spoke to the IR guy and their was mass confusion. Seems there was a misunderstanding between a reverse merger and a reverse split. In reality, what is happening is a simply a public shell which is being reduced 100 for 1 as part of the acquisition. Maybe this sheds a little light on the 98% figure in the latest PR. Here's the quote from the CEO, originally posted on Ihub - ------------------
Posted by: camalion In reply to: None
I have a responce from the CEO Sent via BlackBerry from Cingular Wireles "aol screen name" [email hidden]
"There is no stock split just a reverse merger with a public shell which is getting reduced 100-1 new products on the way and a larger sandwich as well thanks" -----Original Message-----
Currently trading between .02 and .03. Hit a high of .075 yesterday. MM's have been extremely thin on the ask. Should move hard once the rumor is squashed everywhere. At these share prices, market cap somewhere between $1MM and $4MM (depending on which O/S you use - 47MM per PR, 130MM per old shell info) Either way, this is a company that is producing significant revenues ($4MM - $10MM annually). It has established products and distribution. Way undervalued, even at a $4MM market cap.
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Yeah, I like this company. I spent yesterday doing DD on it, and now that it wrongfully fell, I hope to scoop up some more before it pops back up.
Thanks for checking all of that out, btw. It helps when someone posts their findings.
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