Regarding the upcoming merger the company reminds its followers that the only currency the company has, are its restricted shares, and cash in a form of a loan or financing from its preferred shareholders or accredited investors. Usual process in the merger is that a company will recapitalize to absorb the mergers, and pay for the acquired assets. Depending on the situation, sometimes both cash and shares are issued in the merger. Obviously, the higher the share price of our stock the less stock the company has to issue in the merger to the targeted merger company.
As this merger is being created, these new shares will be held in escrow, and remain the control block for some time after the merger. The shares these companies receive are subject to insiders and control block, referred to as Rule 144. These are restricted shares, meaning they cannot trade; henceforth both float and the free trading shares usually remain undisturbed after the merger.
|SOURCE DDS Technologies USA, Inc.|
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