WOW Junebug, you are asking me to do a lot of expl
Post# of 85536
First, reverse merger. MariMed has about 212 million shares, while Univec has about 1.2 billion shares. If we assume Dalton has at least his 150 million shares from a year or so ago when we first heard of this, and he claims he has never sold a single share, then we have a starting point. I would think Dalton would have added to his holdings, and I would think the top managers at AGRiMED would have been awarded shares as well. So, I like to think the top managers would receive an equal distribution of shares just to prevent internal political squabbles, and a 200 million share distribution to Crockett, Goldman, and Mitchell sounds about right to me. That means 800 million shares could be taken out of the system right away, and the float would then be calculated at about 400 million (if you notice, this is what many calculate the current float to be). In such a case, no share reduction would be necessary, and the combined share structure would still be only about 1.5 billion shares for the merged company. MariMed is already nearly a one billion dollar company, and depending on what comes with this merger, they could be worth ten times that amount after the merger.
Normally, the entire share structure of the acquired company is not absorbed, but the circumstances are somewhat different with Univec and this group of companies. In this case, the value of the products, the business deals, and the management is worth far more than the company(s), and that is the value a company like MariMed would wish to acquire. Everyone of the top managers is a goldmine in and of themselves because of their reputations and their connections. In addition, each of these managers have brokered their own deals for business expansions, and those deals are worth millions of dollars as well. So this is one way this merger could go.
Merger with reverse split. The reason for keeping the share structure at 1.2 billion is to prevent a hostile takeover. However, if the acquiring company does not wish to increase their structure to absorb all Univec shares (keep in mind, Univec is the only company in this group with publicly traded shares), then a reverse split of say five for one may happen. The ratio could be anything, but there is no reason for an extreme reduction based on the value of this potential merger. So if one had 5 million shares, and the reverse split resulted in that same person having only a million shares, then at the current MariMed share price of three dollars, you would have a cool three million dollars.
What one should keep in mind is that the announcement of this merger would likely increase share values, and that is especially true if any of the deals are announced with it. So the resulting one million shares could be worth far more than three million dollars. In fact, if the merger is as big as I suspect, that one million shares could be worth upward of five or even ten million dollars. While no reverse split is actually necessary, this is a possible scenario. The point is, an individual with only one million shares could easily become a multi-millionaire.
Now, when one contemplates JVs and partnerships, the best way to look at these things is that they are nearly always additive in value, and we have not even mentioned government contracts that are very likely --- I see a dozen or more products involving the patch alone.