Reverse Mergers

[HokieHead]

BMXI update..

I got word that WFS Pharmagreen is going to Dual-List on the OTCQB. Dual-Listing is not the same as a Cross-Listing.

Definition of a Dual-List:

A dual-listed company or DLC is a corporate structure in which two corporations function as a single operating business through a legal equalization agreement, but retain separate legal identities and stock exchange listings. Virtually all DLCs are cross-border, and have tax advantages for the corporations and their stockholders.

In a conventional merger or acquisition, the merging companies become a single legal entity, with one business buying the outstanding shares of the other. However, when a DLC is created, the two companies continue to exist, and to have separate bodies of shareholders, but they agree to share all the risks and rewards of the ownership of all their operating businesses in a fixed proportion, laid out in a contract called an "equalization agreement." The equalization agreements are set up to ensure equal treatment of both companies’ shareholders in voting and cash flow rights. The contracts cover issues that determine the distribution of these legal and economic rights between the twin parents, including issues related to dividends, liquidation, and corporate governance. Usually, the two companies will share a single board of directors and have an integrated management structure. A DLC is somewhat like a joint venture, but the two parties share everything they own, not just a single project; in that sense, a DLC is similar to a general partnership between publicly held corporations.

Looking at the Alliance Growers PR's and the recent takeover of the BMXI shell by the CEO of WFS Pharmagreen I am thinking there will be a dual-listing of the two, ACG on the CSE market and WFS Pharmagreen (through BMXI) on the US market.

These two will be a huge combination imo.