$LAHO - For now, it looks like we dodged 2 bullet's. I cannot begin to tell everyone how close that was. For now, it looks like we have a reprieve.
In the PR they state:
"Lans Holdings Inc. is pleased to announce that it has successfully secured a 180-day extension to complete the acquisition of 100% of Global Stem Cells Group Inc."
Translation: After they messed up with the SEC, I mean it's the screw up of the century. They went to GSCG, hat in hand, and begged for an extension. Because with the SEC suspension, they wouldn't be able to complete the terms of the merger in the time frame allotted per the contract.
Who knows what kind of behind the scenes concessions LAHO had to make there. I'll let everyone's imagination run wild with that one. GSCG could have very easily told LAHO, "nope deals off." And just like that, it would have been over. OVER!
"The Company has agreed to enter into a settlement with the SEC."
Translation: LAHO was able to cut a deal with the SEC on this. Again, who knows what kind of behind the scenes concessions LAHO had to make there. I'll let everyone's imagination run wild with that one too.
The encouraging part to me is that LAHO literally performed 2 miracles in 72 working day hours from the SEC suspension on 9/6/2019.
Here's the next hurdle and this is the biggest reason why they needed the 180 day extension. We are going to the grey sheets. This is a Finra thing not an SEC thing. I do believe LAHO needs to get back to the pink sheets to be able to complete the merger.
"The Company intends to now file a form 10 to reregister its common shares with the SEC and to locate a market maker to sponsor the Company in a 211 filing to reinstate trading of the Company’s shares."
Translation: There is no "intend" to it. LAHO absolutely has to file a form 10 to reregister its common shares with the SEC. Then the company absolutely has to get a MM to sponsor them in a 211 filing to reinstate the trading, (in the pink sheets) of the Company’s shares. This is the SEC requirement to get back to the pink sheets.
The company has a long road ahead of them and only 180 days to get it all done. They have to get back to the pink sheets before the merger can be completed, which means that we could be back just as soon as they get compliant with the SEC and get a MM on board in the 211 filing. How long is that? LAHO just pulled off 2 miracles in 72 working hours from the SEC suspension. And I'm sure there is a lot of people in the trading community that didn't think they could / would get this far. So we will see.
I have no idea how it will trade when it opens back up on 9/20/19. My guess is that we will have a lot of sellers at first but I really don't know.
But I do know that if they pull this off, (so far so good), it will be a big deal both for them, and for the trading community.
There is risk in all investments.......All IMO of course.