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Re: madeindet post# 77440

Sunday, 10/26/2014 11:22:58 AM

Sunday, October 26, 2014 11:22:58 AM

Post# of 183873
They bring in private investors to unlock depreciated assets buying stock that is well above market value. They then take that stock and use it to under write another start up company of different origins.


There is a fee associated with this transaction that dilutes shareholders but don't for get they are now unlocking depreciated assets they couldn't before, much needed money to keep things moving forward.


So the gains are they can now move forward with new capital form a new offering were the money is used to buy a fixed asset those assets are leased back to the parent company owned by the officers money is then loaned from the second entity and third from revenue paid from the parent company to lease there assets. Now because you have a over lap of interest the parent company is going too get a bit of a deal but then that will reflect in a lower administration cost from the parent company but again this allows the parent to borrow more capital.


Now a debt has been established between the parties and a vale has been set up as too how the money is being spent by the parent company but again you want to establish control you don't want to here the whining of shareholders concerns so you hand pick people that can run your side interest for you that provides you with capital at a discount.