Videolocity Intl (PINK:VCTY)

Videolocity International Inc. claims to have finalized a merger transaction with the Chinese Tactician University.

Key point of interest:

• VCTY trades on the Pink Sheets
• Tactician is as a consulting firm that offers services to the government, businesses and college students. 
• The total revenue in 2009 including training, conferences, consulting and services reached $6.2 million, with a profit of $2.4 million.
• The Company claims that dilution should be nominal with shares used to pay for the fees and expenses of this merger transaction.
• The merger is performance based (still awaiting details).

The terms and consideration disclosure documents are currently being compiled and will be filed with Pink Sheets and the issuers adequate disclosure documents shortly.

Obviously, we are curious to learn more details about this merger. We urge investors to approach this company with a degree of caution.  The IR firm that represents this company, Minmar Group, seems to solely focus on speculative penny stocks with high share counts that trade on the Pink Sheets. In fact, most of the companies Merimar represents are below $0.05 (To be fair many are shell companies seeking merger candidates).  Two clients, Global Medical Products Holdings Inc (PINK:GMDP) and VECTr Systems Inc. (Pink:VECT), have been halted since announcements earlier this year that they were considering mergers with Chinese companies.

Reason for the halts: "The Securities and Exchange Commission has suspended trading in the security until further notice."

You be the judge. Here is a list of additional Merimar Chinese clients:

Hard To Treat Disease (PINK:HTDS)
Hiru Corp (PINK:HIRU)
Eline Entertainment (PINK:EEGI)
Rmd Entertainment Group (PINK:RMDM)
Global General Techs (PINK:GLGT)
Land Star Inc. (Pink:LDSR) 
Good Life China Corp (PINK:GLCC)
Asiana Corp (PINK:ASIC)

Some of these firms claim to be legitimate companies. If this is the case then why have they not:

• Gained SEC compliance
• Executed reverse splits
  
  As always: Caveat Preemptor!!!