Right now EUO (thats the EUO shareholders) own 100% of Acoustic Core
After the "merger", EUO (that again, are the EUO shareholders) will own 80% of Acoustic Core. The existing Markland shareholders will own 20% of Acoustic Core.
On top of that: Woodward in exchange for a security interest in the shares of Markland being acquired by Eurotech and 50% of the proceeds generated from future sales by Eurotech of these same shares.
(so basically Woodward owns 1/2 of the 80% that EUO gets, plus the mystical "security interest")
What does Markland bring to the table?
$5K Cash No revenue No earnings
Here is what the Yahoo profile says: "Markland Technologies, Inc. has no operations. It was engaged in the marketing and distribution of high-end projection systems and support accessories primarily to the consumer market through its wholly owned subsidiary, Vidikron of America, Inc. On May 28, 2002, the Company received a notice of default from its senior secured lender, Market LLC, relating to a loan and security agreement and a related secured convertible revolving credit note (the Note) issued in favor of Market LLC for, among other things, the Company's failure to make payments of principal and interest due under the Note. Market LLC had advised Markland that it intended to exercise its right as a secured creditor in and to all collateral granted to it to secure the Note, including all of the issued and outstanding shares of Vidikron of America, Inc."
Sorry, I don't see this as a good deal for current EUO shareholders.
<EUO will own zero rights to AC. All they will own are shares of the other company - shres of the other company that opended at 1 cent today.
EUO shareholders do not own any part of the other company, just as EUO shareholders do not own any part of EUO's assets, such as PCs, equipment, etc>
That is pure crap. EUO stockholders own everything that is considered an asset or liability to the company, PCs, equipment, and yes, even stock held in other companies. Why do you think drug companies that own shares in biotech companies crashed so much lately? It's because as the value of the compaines thay own stock in go up, so does the value of the company holding the stock, and when it drops, so does the value of the parent company. Duh. If Markland's assets go up in value, EUO goes up in value. And the reason Markland was trading at one cent today is that it was basically a shell- until today. It will jump in price tomorrow, and once shareholders figure out that EUO has a controlling interest in that company, and that EUO's net worth increases if Markland's share price increases.
There is bound to be some confusion about this one. Here are a few points: EUO will still control the Acoustic Core technology, since they will own 80% of Markland. Once Markland approves it's 20/1 reverse split, it should be eligible to get listed on NASDAQ. If the technology takes off, EUO owns the largest piece of it. And by retiring a bunch of EOU's outstanding debt, it will make their balance sheet look better. As far as Markland having nothing, it is basically a way to create a seperate subsidiary stock without going through the BS of starting from scratch, in other words, it's a shell company made viable by the technology. What am I missing here? I sold half my shares last Friday (after buying a couple of weeks ago) to free up cash for some bargains today, and came within a penny of selling the rest today, but only because there were beginning to look like there were other stocks out there that had more near term potential. We'll see how confused shareholders are tomorrow.