MODT filed their S-4 regarding the merger on 10/27. With the holding date set and the vote in January, we should be getting a copy in the mail soon.
I don't know why they set an exchange ratio of .85 to one, new shares for old, unless they are hoping to keep the value around $20 after merger.
I arrive at this value by taking current price of approx $20 divided by .85 (exchange rate) less the $3.66.
MODT needs to do better job of letting the investment community know about their company. If they can grow earnings better than $.20 per share next year with the merger, they deserve a much better market value.
The $3.66 is 15% of share price on Sept. 29 the date of the of the SPI merger/acquisition announcement. I would like to think that the dilution has already been factored into the current price.(20+3.66)This would mean we've had some positive movement since the California elections and since the drop in price after the merger announcement.