Shares of Reeltime Rentals Inc. (OTCMKTS:RLTR) are up significantly in afternoon trading today after it was announced yesterday that the company would be acquiring Bellatora Inc., a Vapor cigarette manufacturer. After the merger is finalize, Reeltime Rentals Inc. (OTCMKTS:RLTR) will structure their previous operations as a subsidiary of the main company, and also make Bellatora Inc. a second subsidiary.
James Hodge, CEO and Chairman of ReelTime, remarked, “I could not pass up this opportunity for ReelTime shareholders, each will own shares in both companies. ReelTime will emerge as an SEC fully-reporting Company, or as an alternative reporting company following the Regulation A+ filing, with greater transparency and far more valuable to the shareholder. The shareholder value will increase through the reporting status upgrade, increased exposure to the public markets and the value of owning shares in both Companies. Additionally, they will receive shares in Bellatora, all while holding the same number of shares in ReelTime that they hold as of the ex-dividend date. This is to be contrasted from the typical takeover of a company followed by a massive toxic reverse split depriving the shareholders of any value.”
This deal will allow Bellatora to better showcase their line of e-cig products as well as quickly move into the public markets. Once the deal is complete, shareholders of Reeltime Rentals Inc. (OTCMKTS:RLTR) will be provided with one share of Bellatora stock for every 2,500 shares of Reeltime Rentals, and a new share of Reeltime Rentals for each current share, via a 2500 to 1 reverse split.
The stock is currently trading higher by 144.90% or $0.00071 following the positive news, hitting $0.0012 per share at the time of us publishing this article. About 38.55 million shares traded hands or up 6897.37% from the average. RLTR has declined 84.19% since June 9, 2015 and is currently downtrending. It has underperformed the S&P500 by 79.50%.
Reeltime Rentals Inc. is in the business of identifying and monetizing individuals and companies who have been thrust into the public eye through the media. The company has a market cap of $55,300. This awareness may come as a result of being featured on a TV show, newsworthy event, or viral social media exposure. It currently has negative earnings. Reeltime provides services to capitalize on such opportunity via merchandising, leveraging exposure into relationships, creating and marketing new revenue streams for exiting products and launching new products.