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Subject:  couple of questions Date:  2/26/2004  12:11 AM
Author:  bobg104 Number:  1325 of 2244

I own a few hundred shares of USHG. This morning USHG announced a merger with a Ionatron, a privately held "development stage company". The announcement went on to say:
"Pursuant to the merger agreement, Ionatron stockholders will be issued an aggregate of approximately 65% of USHG's outstanding common stock, on a fully diluted basis, in exchange for all outstanding shares of Ionatron common stock. Current USHG shareholders will continue to own apporximately 35% of the combined companies after the merger".

My questions are as follows:

1. Can anyone define what a "development stage company" is for me?

2. What is meant by "issuing stock on a fully diluted basis"?

3. Since Ionatron is a privately held company, how can I assess how their performance has been?

Bob, Long time fool, first time poster.

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