Quantum Materials Corp. (fka QTMM)

[Kurt_Banoffee]

I think you misunderstand what happened. QMC didn't spin off QMA, it formed QMA with GTG. In a spin off, the company no longer owns the business that was spun off - that's why you get shares in the new business. It's a big difference. In this case, QMC owns part of QMA, and they didn't spin off any of their existing business.

QMC and GTG incur operating cost in QMA, they both own QMA, QMC shareholders own QMC, so QMC shareholders own QMA and are entitled to QMA shares. When a company spin off the company into create anther company, the shareholders are always offered free shares of the spin off company based on a ratio, such as one spin off share for each 3 parent company shares. That is the law.