If it was a merger then the other company should be in halt aswell...AYC is not.
They were undersubscribed (who would buy shares at 1.3 cents when they can be bought on market at 1 - 1.1 cents. They are cash strapped so now they need another way to fund operations, as I imagine based on previous quarterly cash flow reports that there is very limited cash to keep going at this point...
