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Reverse Merger Wire: Bankruptcy reorganization and reverse merger/Amaranth Advisors SPAC fallout

Submitted by admin on Tue, 2006-09-26 17:05
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  • Reverse Merger Wire is reporting on the complicated result of one OB bankruptcy noting that "Herborium, a maker of herbal health remedies, reverse merged with a subsidiary of Pacific Magtron International Corp. (PMICQ.OB), which is itself a subsidiary of Advanced Communications Technologies (ADVC.OB), an electronic equipment repair company. The merger was part of the bankruptcy reorganization plans for Pacific Magtron and its subsidiary Live Warehouse." That's a mouthfull for sure. The wire notes that the new company plans to change its name to Herborium Group. Here's the 8-K from the SEC. In 2002, the FDA had this to say about some of Herborium's product claims. list of other FDA "cyber" letters sent to such internet purveyors in 2002. Yahoo Finance shows Advanced Communications Technologies to itself be a subsidiary of Encompass Group Affiliates, Inc. which "provides repair, refurbishment, and recycling services to the computer peripheral and consumer electronics market worldwide." It also owns something called Cyber-Test.
  • The wire also notes that the hedge fund Amaranth's huge gas futures trading losses have also has pummeled the price of some SPACs, noting that "Chardan North China Acquisition Corp. (CNCA.OB), a specified purpose acquisition company, attributed recent stock price volatility to heavy selling by a major institutional investor widely believed to be troubled hedge fund Amaranth Advisors. Chardan North's stock price dropped about 10% on Sept. 18 as Amaranth was rumored to be selling off its holdings after suffering major losses on a bad natural gas bet." Amaranth is believed to have holdings in several other SPACs, including TAC Acquisition Corp., Great Wall Acquisition Corp., Coastal Bancshares Acquisition Corp., Rand Logistics, and Ad.Venture Partners. Bloomberg has a full story about Amaranth's taste for SPACs.
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