As in most cases of deregistration on the OTC, the co. is trying to save money on accounting and filings.

" The decision of the Company’s Board of Directors to deregister its common stock was based on the consideration of numerous factors, including the large costs of preparing and filing periodic reports with the SEC, the increased outside accounting, audit, legal and other costs and expenses associated with being a public company, the burdens placed on Company management to comply with reporting requirements, and the low trading volume in the Company’s common stock. Deregistration will allow the Company to allocate its resources into further developing its business plan and its product line."

Many times folks will spread rumors of merger because they are dark (deregistered) but it's unsubstantiated rumor meant to stir up potential buyers. Only the co. knows exactly what they will do. Most likely they just can't afford to pay for audits and filings.