rzaslim, good question. Investopedia has some good detailed articles discussing various forms of mergers and acquisitions. Basically the acquiring company can use a cash tender offer and buyout the target company. Or the merging companies can establish a share swap with a conversion factor such that the shares of the company getting absorbed will effectively be new shares of the remaining company (shareholders of the target company get a certain number of shares of the acquirers stock based on how many shares of the target they have). Or the merger can be a mix of cash and shares. As for RFMK, it is difficult to even guess as to how it could affect the PPS or share structure because it would be a total guess to speculate on who they even could merge with. You would have to look into each MMJ company and look at their share structure and balance sheet (assets vs liabilities) and RFMK's and it would be a different situation for each possibility and scenario. For instance, if it was say with a CBIS, the major question would be : which corp would be the target and which would be the acquirer? Or would the resultant corp be a totally new entity with a new corp structure and name, etc. The assets and liabilities would be combined and the pool of shareholders would basically just get combined and merged. If the merger were to be beneficial for both companies, and in that case, I think it would be, then I should think the PPS would go up, at least the real share adjusted price in terms of real value would go up, but depending on if any splits happen (reverse merger, share swap conversion etc) the number of shares could even wind up being greater and so the PPS would move down but because those assets and new business "synergies" would eventually help the resultant company, the stock would probably move up over time. You see this on the big exchanges too when an acquirer announces a takeover and their stock gets hit but then over the weeks and months thereafter it goes back up and then goes even higher, while the target company's stock shoots up immediately and stays up. The real answer is its impossible to know how it could be affected because it totally is dependent on the details of the deal that is made between the companies.
http://www.investopedia.com/ask/answers/06/st...etails.asp
GLTY
$RFMK!
