CMSF Corp. (CMSF) rides merger news to higher stock price

Posted on: Wednesday, June 1st, 2011
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CMSF Corp. (OTCBB: CMSF) saw its stock climb 129.2% Wednesday to 2.75 cents, on word of a merger. Volume for the stock was nearly 980,000 shares.

CMSF Corporation claims to have no significant operations. Its stated purpose has been to seek a merger with an operating company. Today, CMSF announced that it has entered into such an agreement to merge with Plures Technologies, Inc.

Plures, through its 95%-owned subsidiary, Advanced MicroSensors Corporation, is a semiconductor foundry with unique expertise and capabilities to develop and fabricate high-quality, high-margin micro-electro-mechanical-systems (MEMS) and spintronics solutions.

On May 23, RENN Universal Growth Investment Trust PLC and RENN Global Entrepreneurs Fund, Inc. purchased $1,500,000 and $500,000 Plures promissory notes, respectively. At the same time, CMSF agreed to a merger with Plures. The merger will be consummated in the coming months. Simultaneous with the consummation of the merger, RENN Universal and RENN Global will convert their debt to equity in the combined Plures-CMSF entity, which will be called Plures Technologies, Inc.

After the closing of the merger (and upon conversion of debt to equity), 72.5% of the combined entity’s outstanding common stock will be owned by the current stockholders of Plures, 20.5% of the stock will be owned by RENN Universal, 6.8% will be owned by RENN Global and 0.2% will be owned by existing CMSF shareholders unrelated to Plures, RENN Universal or RENN Global.

Stephen Crosson, Chief Executive Officer of CMSF commented, “After a long, thorough search for a merger partner, we believe our patience has been rewarded. We are fortunate to have found a growing technology company like Plures with which to merge and we are eager to see the company succeed.”

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Category: OTCBB, Penny Stocks
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