When a small fish eats an even smaller fish—what’s really going on here?

Hey folks, I stumbled upon this wild setup in the market and wanted to get your takes: So, Company A (a Chinese healthcare company listed on the US stock market) is trading at $8.5/share, with a market cap of $230M and 27M shares outstanding. They just announced they’re acquiring Company B (an insurance firm) via a stock issuance. Here’s where it gets spicy: ● Company A is issuing 70M new shares to make the deal happen. ● Post-acquisition, Company B will own 70% of Company A. ● For reference, Company B’s market cap is just $60M right now, and its stock is at $1/share. Now, crunching the numbers: 70M shares of Company A at $8.5/share = $600M. Meanwhile, Company B is sitting there valued at only $60M. On paper, it feels like B is getting a glow-up here. But here’s my question: 1.  With this kind of massive dilution, will Company A’s stock immediately tank to reflect the new reality? 2.  Deals like this—where a small-cap company uses stock issuance to gobble up an even smaller-cap company—how common are they? Are these "little fish eats smaller fish" moves just a sneaky way to make the smaller fish look more appealing in the short term? I’m getting vibes like this is a shiny distraction play, but maybe I’m missing something. What do you guys think? Anyone seen similar moves in the market before? Would love to hear your thoughts. $AIFU $BGM $BABA $NIO https://preview.redd.it/83vmn8tsey8e1.png?width=964&format=png&auto=webp&s=9c5c838a9d154dcc8559e615b325aadec0f99f9c