Opinion ID: 1442955
Heading Depth: 2
Heading Rank: 2

Heading: The M & A West Transaction

Text: The second reverse merger involved M & A West itself and Buffalo Capital IV, Ltd. (Buffalo Capital), a public shell company. In April 1999, Medley prepared documents and helped facilitate a reverse merger between M & A West and Buffalo Capital. This transaction was accomplished through a two-step structure in which two separate agreements were set to close on the same day. Under the Reorganization and Stock Purchase Agreement, dated April 19, 1999, all of the shares of M & A West were transferred to Buffalo Capital. In exchange, M & A West and/or its assignees received 69% of the outstanding Buffalo Capital stock, including both existing shares and new shares issued from Buffalo Capital's treasury. The agreement specified that Medley was to receive 110,000 of the existing common shares from Buffalo Capital's shareholders [a]t the closing. The agreement also provided that, on the closing date, Buffalo Capital's officers and directors would be replaced by Scott L. Kelly, an officer of M & A West. Buffalo Capital then changed its name to M & A West, Inc. Under the separate Stock Purchase Agreement, dated April 20, 1999, Medley and the M & A West shareholders agreed to purchase the existing shares specified in the Reorganization and Stock Purchase Agreement from the Buffalo Capital shareholders for $2,983. The sale was expressly contingent on the closing of the Reorganization Agreement between Buffalo Capital and M & A West. Both Agreements were scheduled to close on April 26, 1999. Medley received 110,000 shares of stock from the officers, directors, and shareholders of Buffalo Capital. As before, Medley and the former Buffalo Capital shareholders signed lock-up agreements. Medley was also paid $75,000 in cash. Within eleven months of the merger, Medley had sold shares of this stock to the public for a profit of $547,139. No registration statement was filed.