Agoracom

"How does a 50 50 merger between these cos occur?

1-- If you had to give Co B an equal # of shares.. in theory you would have to give them 400M shares.. 100M you have.. would you then have to authorize an additional 300M? What if Co B requested some number less than those 300M shares and that something else of great value? Could that be possible?"

Could be possible, but not preferable. If what you are really asking is if we would give up our Preferred Shares to get the deal done, I can't answer that, but I would say I don't think we should. Bottom line, we don't know what the value of TPL. Some seem to think they must be valued higher than us because they have other business activity that they are involved in. However, if those other business activities are not profitable that would not be the case. Unless there was a perception/likelihood of future profitability. Has Intellasys sold any chips? Have they done other licensing? What's their overhead? What's their potential? Lots of questions that we don't know the answers to that would come into play.

"2-- Say you got rid of all those shares above, as you stated prev, and made it 400M total 200M/200M.. what would be the effect on our indiv retail share price? would it double or stay the same or..? "

Can't say what the share price would be because it would be based on the perceived value of the "new" company. Ideally a merger creates/brings together certain synergies of the 2 companies being merged. Eliminate some overhead costs, create new opportunities because of a combination of talents (could TPL finally market Ignite/Inflame?), and you have an entity that is greater in value than the 2 individual companies. That is what a merger should do.

"Then as prev-Co B sold their shares would prev-Co A retail shareholders experience dilution?"

In theory no dilution should occur - our shares should ultimately be worth more than pre-merger because of the increased value mentioned above. That's in theory. In reality, who knows what the actual value would be as we have no idea of the inner workings (profitablility) of TPL.

"3-- Say Co B is determined from the above info to have more value than Co A... wouldn't it be possible that Co B would simply require something (ie x# shares) of value from Co A in order to make it 50 50?"

What you are really saying is that it wouldn't be 50/50. If TPL is valued at $800 million and PTSC is valued at $400 million, then the owners of TPL should end up with twice as many shares of the "new" company than the ptsc shareholders end up with. I reiterate, the share price of ptsc should not enter into this equation. It comes down to the values assigned to the individual companies.

Hope that helps.

If I'm gone when you reply, have a great holiday.