When construction of production plants are completed by year end and QD production begins early next year, profit will be rolling in. QMC's shares of profit is 50%, while its share in the property is 25%. Chinese government has rule that any company operating in China can only own 50% of the property while the state owns the other 50%. In this joint venture, both QMC and GTG each owns 25% of the property. It is the government's protectionism is preventing foreigners from taking over China. The Quantum Material Asia(QMA) is only a production plant and a property in the joint venture between Quantum Materials Corp and Guanghui Technology Group, it is not a separate company, so there will not be any public common shares issued for QMA. Much like the joint-venture mining property of two junior mining explorers will not be considered as a separate company, it is only a property. I think the Chinese government wants to invest tens of million dollars through GTG in the shares of QTMM while providing QMC working capital. GTG will be the equity financier and the holder of the shares. That is why the company plans to raise the authorized shares to 750 million. The increase will has no negative impact on share price as they will be kept for long term holding, the float remains unchanged.
