InvestorsHub Logo
Followers 35
Posts 2103
Boards Moderated 0
Alias Born 11/12/2013

Re: UserAlias1 post# 2990

Saturday, 09/19/2015 9:50:42 PM

Saturday, September 19, 2015 9:50:42 PM

Post# of 5784
15% of something is better than 100% of nothing. On paper, GROC is "buying" a productive company. In reality, the productive company is buying the shell known as GROC, and they are paying for GROC by allowing its owners (shareholders) to retain 10-15% (for example) of what will be the new share total. In return, they get control of GROC and the lion's share of the ownership, and can then raise capital for expansion through the sale of shares... (the purpose for being a public company). This is a reverse merger. Or at least one way of doing a RM. All the above is my opinion, and not meant to be exact information regarding this particular instance.