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Re: VA Patriot post# 121631

Wednesday, 03/22/2006 1:11:48 PM

Wednesday, March 22, 2006 1:11:48 PM

Post# of 286278
Business 101 increased shares- In regard to major partnerships it IS very common for the parent company (CC in this case) to receive a significant portion of shares in the new "partner" company. CC has a major presence throughout the US, have the opportunity to increase customer revenue as well as enhance their retail capapbilities, but it costs them money to complete the GF deal. Think of it this way, CC will have a financial interest in making GF succssful i.e. marketing, advertisement, promotions etc. CC will also benefit from their initial investments of realestate (floor space), training employees, marketing costs, etc. THE increased shares needed COULD have been one of the BINDING stipulations that were made by CC when they were negotiating the singing of the agreement!!