P.M. & E Rg (OTCMKTS:PMEA) Stock Getting Ready To Fly

PM&E Inc. (OTCMKTS:PMEA), the aeronautics company headquartered in Wyoming, USA, has made various new developments after the company completed its reverse merger with EVADA Aircraft Corp. on September 28, 2016. We will talk in this article about the most remarkable ones; those that made the share price jump, such as the massive share reduction, and a final deal that shareholders should appreciate very much. The price action has been quite active:SourceBusinessPM&E Inc. is a holding company focused on the field of aeronautics after the acquisition of EVADA Aircraft Corp. It has three divisions:

• EVADA Aircraft Corp: is responsible for mounting and assembling different parts of the EVADA A4 aircrafts, as well as commercializing the Rally and Century models.
• EVADA Aircraft SA: is located in Sousse, Tunisia. It manufactures different parts of the aircrafts.
• EVADA Services SARL: is located in Sousse, Tunisia and brings services to other clients including aerial agricultural treatment, banner towing, pilot training, and first flights.

PM&E Inc., as a holding company, is also responsible for researching opportunities in this sector and others in order to enhance the inorganic growth of the whole group. PM&E has five models. This is the EVADA A4 Model. Its maximum speed is 325 km/h and usually has a cruise speed of 238 km/h:SourceAdditionally, the company offers the Evada A4 Ambulance, which is the last model, but equipped with medical equipment for patient transportation to hospitals. The same logic applies to the EVADA A4 Surveillance, which is equipped with "Cameras Video Processing Software" for maritime, military, or Government use. In the company's website, it is stated that the company is prepared to customize this model for the needs of clients. This is the Rally model. It is characterized for being fuel efficient and reliable. It is manufactured by PM&E's partner AVIONAV:SourceThe Century model is also manufactured by AVIONAV. It is the best model for acrobats and aerialists, since it was designed for both fast speed and maneuverability. The company's site resumes the design of the model with the following words:

"With the Century, breakthrough the boundaries. The Century has benefited from an aerodynamic study which gives it a sleek styling design with a particular attention to profile unique lines." Source

SourceRemarkable DevelopmentsThe acquisition of Evada Aircraft Corp. was announced on July 7, 2016 and closed on September 16, 2016. Traders started exchanging shares of the company from September 28, 2016. Only two days later, the company announced that it was reducing the amount of authorized shares from 30 billion shares to 17 billion shares. Additionally, the market got to know that for the payment of EVADA, the company had issued 12 billion shares and from that time on, 12.5 billion shares were restricted. In total, we believe that traders were happy with these transactions, as the free float was drastically reduced.The year 2017 was full of surprises. Most of them were good for shareholders. First, the company announced a reduction of the amount of shares outstanding on January 9, 2017. According to the communication, up to 8.5 billion shares were going to be eliminated. In our opinion, the jump in January 2017 can be justified with this news. On January 17, 2017, the company finally announced the retirement of more shares. The CEO, Joseph Bourne, said the following about the operation:

"We are building a business and brands of integrity that our employees and shareholders can be proud of for years to come. In our on-going effort to build trust and credibility with the investment community, we are announcing today a significant restructuring of our authorized and outstanding shares. Once all filings are complete, the authorized share count will be 9 billion shares, the outstanding number of shares will be 5.115 billion shares and the free trading float will be 1.575 billion shares." Source

Additionally, in March and April, the company seemed to be on fire. On March 17, 2017, the CEO said that it had received an offer to buy Evada Aircraft for $12,000,000. This is very relevant as it means that bankers are looking at the company as an undervalued acquisition target. The CEO said the following about the opportunity:

"An existing publicly traded company has divested itself of most of its business dealings, debts and assets and is looking to pursue a new business model. They like what they see with EVADA Aircraft. We want our shareholders to know that we are taking this offer very seriously. Our existing management, development and assembly team will remain intact. In addition, there are a multitude of reasons why this would also be a huge win for all existing shareholders and I will outline all of those reasons and share more details on this development in the coming few weeks. As always, we appreciate your support of our company." Source

Then, on April 18, 2017, the company claimed to have received another offer, even more lucrative than the previous one. The CEO did not say the amount offered for EVADA. Finally, on April 26, 2017, the company announced that it was selling the division to Seilon, Inc. (OTC: SEIL). The terms of the transaction are the following:

"We negotiated this transaction as a share exchange at a ratio of eight to one. In other words, PMEA shareholders will receive one share of SEIL for every eight shares of PMEA. We will have more information to share in the coming days, but for now we wanted to give as much detail as possible to allow investors to make an informed decision based on what we know to this point." Source

We could not find yet the merger agreement between the two companies. Hence, we don't know whether the transaction will have pending condition, such as financing condition, or whether shareholders of both companies will need to vote.Financial Statements and ConclusionThe company's financial statements can be found here. The company's financial position before the sale of the EVADA does not seem worrying. The company holds approximately $1.4 million in total assets, and only $211,000 (Accounts Payables) in total liabilities. We expect that the company obtains some cash from the sale, and will be able to reduce the liability side and increase the net assets. Additionally, the company does not show any warrants or dilutive securities. To sum up, there is a lot to like in the financial part of the business.In our opinion, the acquisition and sale of EVADA was very positive and shareholders should appreciate the transaction. We still need to see the merger agreement and the sale needs to close, but we believe that if the CEO accepted the deal, it was because it's the best deal for shareholders. Hence, we will keep informing our readers about the terms and conditions of the deal. But, in any case, subscribers to need to stay on top of the latest development as more extraordinary returns maybe coming in the near future. We will be updating our subscribers as soon as we know more. For the latest updates on PMEA, sign up below!Disclosure: We have no position in PMEA and have not been compensated for this article.