Pilgrim Petroleum Corp. (PGPM)

[jgstockhunter]

A reverse merger is often structured as a reverse triangular merger. In that case, the public shell forms a new subsidiary which merges with the private operating business. At the closing the private company shareholders exchange their ownership for shares in the public company, and the private operating business becomes a wholly owned subsidiary of the public company. The primary benefit of the reverse triangular merger is the ease of shareholder consent. That is because the sole shareholder of the acquisition subsidiary is the public company; the directors of the public company can approve the transaction on behalf of the acquiring subsidiary, avoiding the necessity of meeting the proxy requirements of the Securities Exchange Act of 1934.

Sound familiar to any announcements??