Inspyr Therapeutics Inc (OTCMKTS:NSPX) is executing a Plan of Merger and Agreement it has with Rebus Holdings Inc, which will result in Rebus becoming Inspyr’s direct parent company which will act on its behalf on the OTC Markets. According to this Merger Agreement, Rebus’ wholly-owned subsidiary will merge with Inspyr Therapeutics once the filing of the Certificate of Merger is complete. Inspyr will then become the holding company’s direct, wholly-owned subsidiary. However, all this is still subject to FINRA (Financial Industry Regulatory Authority) approval.
Upon Reorganization consummation, the stakeholders at Inspyr Therapeutics will automatically become the holding company’s stakeholders on a one-for-one model. They’ll have the same approximate ownership percentage and number of shares as they previously held in Inspyr before the Reorganization. This transaction is meant to tax-free for the stakeholder’s US federal income tax purposes. The Reorganization will be conducted according to the DGCL (General Corporation Law of the State of Delaware). This legislation is what provides for holding company formation with stockholder votes.
Market Reaction:
On Tuesday, NSPX stock soared 87% at $0.0037 with more than 507.55 million shares, compared to its average volume of 13.71 million shares. The stock has moved within a range of $0.0021 – 0.0051 after opening the trade at $0.0021.
