Merger news drives Prevention Insurance (OTCBB: PVNC) to a new fifty-two week high. Shares of Prevention traded up 6 cents to close at 10 cents per share on volume of almost 7 million shares.
The company announced today that it has agreed to merge with Shanghai Senyin Development Company which manufactures pulp and paper products and distributes them around the world. Prevention feels that Shanghai Senyin is a perfect fit that will provide a solid platform to grow international sales. Prevention believes that the merger could be consummated in the next forty-five to sixty days providing that all audit and regulatory requirements are met. Shanghai Senyin has revenues in excess of $50 million and above average industry profits.
Shanghai Senyin is a China-based company. Market News First contacted Prevention’s chief executive Scott C. Goldsmith for a comment about the pending merger with a China company rather than staying local. He said “All the action is in China as far as the investment banking opportunities go. I would say that eight out of ten merger opportunities we are approached with are from China.”
Prevention attempted another merger back in January of this year. They entered into discussions with MeshCity, a manufacturer of hardware and software that supports broadband, VoIP, and security solutions and allows high-speed WIFI and GPS to communicate with each other all in one reliable network. Even though this was an attractive merger candidate, Prevention announced in the same press release today that their discussions with MeshCity did not produce a letter on intent.
Prevention intends to organize independent insurance agencies to create a co-operative group of health, life and casualty insurance companies in the United States. It also sells automated teller machines as a dealer representative to retail outlets. The company is headquartered in Las Vegas, Nevada.
