Jovita Baltrusaityte

Is Global Holdings Inc. (OTCBB: GOHG) Going to Be Acquired?

by Jovita Baltrusaityte August 19, 2009
707233_flags_of_the_world.jpgGlobal Holdings seems to be waiting for its emergence from the development stage, where the company is currently stuck. As mentioned in a press release at the end of July, Alpha1 Security Inc. plans to acquire approximately 83% of the issued and outstanding shares of GOHG. Thus soon Global Holdings might become the property of Alphal. Let's look at whether there is anything worthwhile in the company.

Global Holdings Inc. (GOHG.ob, or OTCBB: GOHG) says it assists in securing asset based financing for smaller companies throughout the United States and Canada. However, GOHG does not have a single employee at this moment, and the president of GOHG has not only agreed to allocate a portion of his time to the activities of the company, but is also using his residence as the office of the company. Isn't that nice? It's a very comfy place to work from home.

However, nothing else provides for a bright day. First, the stock of GOHG seems to be hardly trading at all, though after the last trade, the stock price reached $0.68, a slight increase of 13%.

Second, with no assets for the whole year 2009, Global Holdings has over $44,000 liabilities compared to $38,000 in March. However, this does not stop the company from the third point. In order to get more than 46 shareholders of its common stock, GOHG hired two companies which specialize in stock promotion. OTC Advisors and OTC Picks each received 20,000 shares for their services. As the company has no cash, it has decided to pay them by shares. At the current price, that would be almost $28,000.

All in all, if Alphal is to acquire Global Holdings, shall it bring any profit for the company? What about investors? Will those present 46 shareholders remain with the company for a long time, or they will run away? Or maybe we shall soon see new ones arriving?

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Reference:

The News on Global Holdings, Inc.

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