Grand Master Fong is a very smart cookie on these operations & he is one many.Very educated on corporate,financing structures & keeping within the legal boundaries(limits) to operate these companies.He knows well on toxic financing & takes advantage of any loopholes,debt can be a friend that can be used in structuring many advantages.Although it would have to be a controlled debt in order to play the cards right.Holding companies play an important role as a "parent entity" to make the scheme of things to work properly.IMO.
Example would be the agreement signed with MedNVC LLC in California that does business across the state,as we are now aware that MedNVP LLC is not listed in the State as a business entity but maybe an a off-shoot entity of a Holding Company in which Toland himself may be part owner.In essence you can report a PR "deal" that was done with a company that is a subsidiary of a related Holding Company.SGLN is referred as a corporate holding company I think & AFP* is a subsidiary of a foreign corporation AF*I I believe in Europe.Holding Companies can issue financing to its subsidiaries in turn issue notes in exchange for stocks to sell.All these shares these "officers" own that are restricted will be sold to market as conversions A & B in which are bought by another firm as issuers that will be sold to common investors for profit.The further the subsidized company goes in debt,the more can be issued.
This system works very well by a small team or group of a few people to keep things in motion while making profits.So business savvy,corporate structures,holding companies,subsidiary businesses whether listed as a LLC,Inc,Company or Corporation are all intertwined & keeping within corporate law to be totally legit in most cases.
Many companies do this,example Warren Buffet & his Berkshire Hathaway do this but are very transparent & see all the companies listed in his Holding Corporation.But you will notice on the "lower" exchange here in OTC/Pinky land,it is not transparent at all to as if a lot of hide & seek is occurring, but keeping within the legal parameters most of the time.
Of-course this my "Opinion" & I am sure there are errors but my point is here,I only delved into this arena in one day on trying to connect the "dots".
I am sure you savvy research detectives can research much further.
GLTA