NGSC   

RTO?

You are correct but basically if it is a RTO then long term investors may wanna hold on to see this 'NEW' company is doing what kind of business correct? Who knows it maybe profitable such that it's NAV maybe > 20 cents? Hmmm... tough decision now....

 

Its gonna issue new shares and dilute the price warning!

 

Resume trading NOW after halting 2 days.

 

Trading halt on proposed acquisition of assets. They intend to pay by issuing more new shares to the Vendors at 0.20

Does that mean more shares will be floating for this stock and hence it will be trading sideways around the 0.20 mark for awhile?

 

Reverse takeover. According to Wikipedia, a RTO also known as a back door listing, or a reverse merger, is a financial transaction that results in a privately held company becoming a publicly held company without going the traditional route of filing a prospectus and undertaking an IPO. Rather, it is accomplished by the shareholders of the private company selling all of their shares in the private company to the public company in exchange for shares of the public company.



While the transaction is technically a takeover of the private company by the public company, it is called a reverse takeover because the public company involved is typically a "shell" (also known as a "blank check company", "capital pool company" or "cash shell company") and it typically issues such a large number of shares to acquire the private company that the former shareholders of the private company end up controlling the public company.

 

care to enlighten what does "RTO" means?

 

Rose in speculative dealings on talks that there could be a RTO soon.