The company has always been very shady but I like the claims for some of their products. It is probably the most disreputable stock I have ever bought (I doubled and got out before the CRADA announcement). I was hoping to buy back cheaper. I am certainly unimpressed by the background of Markland and its fugitive CEO. I guess I shall just watch and wish you luck. My fave EUO technologies in fact have been EKOR and HNIPU; I never bought the stock for AC. But this, like almost everything the company does, smells.
this company wants to spin off the homeland security part of their business.the company doesn't have the money to put into an expensive IPO....( SEC fee for a seat on the nasdaq board).therefore it's cheaper to infuse there business in a company on it's last leg and take its place on the nasdaq.it's less expensive than starting fresh with an IPO.i'm angel investor who as invested in a private company which is looking to do the same thing to a publicly traded company.we all know EUO doesn't have much in cash.all they're doing is taking the place of a publicly traded company to save the enormous cost of IPO.this is why they will have 80% interest.20% goes MKLD for having being traded on the nasdaq.good luck to all.i think this is not a bad deal.
The Way I See It...
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?
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.
This is my take on it. Before I tell you I will give you some personal backround. I have watched this company on and off for some time. When the last pr came out regarding the air force, I saw it soon after it was released and I bought 10k shares at .34 and sold at .60, thought that was too much of a run up and took the profits. Was watching and thought I might buy back next year, closer to the date of the test results for the Air Force. I saw todays news and looked at the other company. The first thing that comes to mind is why? What benefit would euo have in transferring the core of the company to this otc co? markland is nothing and it worked with tvs. It raises many red flags to me. Also, why the reverse split and why did they give up so much to the preferred. If I were you I would sell and wait and see when the dust settles. I always follow the rule that if it smells fishy then it probably is.
I hope this helps you.
I dont know that much and am also a bit puzzeled. I belive that with 80% ownership the BOD of Euo will control MKLD which at the moment is nothing more than a shell with almost no money or prospects . So from that perspective we will still benifit from AC trials just not as much. It does seem though that they did this as a better way to line thier own pockets if the trials are sucsessful.
That was pretty broad. Maybe we can ask the questions like this to get your answer:
1. Does EOU have a real chance of selling to the Military and/or Homeland Security following the USAF test?
2) Why would EOU become involved in a reverse split beyond the obvious delisting issue?
3) Who are these new guys and what is really being contributed?
I am sure there are more questions however this is a start.