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Tuesday, March 14, 2006 11:07:32 PM
Dan wants to expand his business skiershop, high media etc. The problem is he lacks capital and the banks won't give him a loan for lets just say lack of collateral. So now he goes out and strikes a deal with Astrom to get the prrm shell. Some call Astrom other things, but Dan had to. Now Dan looks for other existing entities who also wish to grow and expand, but, they have the same problem Dan did, Lack of working capital and no collateral or not enough revenue to support a loan. So SMMW goes in and strikes a deal with these individual entities and brings them under the umbrella of SMMW. Dan uses shares to puchase these entities, but you notice each company maintains a small percentage of ownership apart from SMMW. The people Dan is striking the deals with are experts in thier field and continue to run there companies. Thier also now all majority owners of smmw with thier stock holdings. I'm sure the percentages vary. Now they go to the bank as smmw with all these businesses under it's umbrella and now they go to the bank for a loan and they have some power. The bank sees a plan and potential revenue and decides we'll lend smmw money. Pretty good when you started out in the hole. Also the stock price has to go to the agree upon purchase price, probably .0006 to.0007 lol eom
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