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Re: None

Friday, 09/15/2017 1:21:13 AM

Friday, September 15, 2017 1:21:13 AM

Post# of 13571
I think its pretty simple.

For example, if 1M USD from GLEC was used to fund the operations of GECO, and GECO raised 1M USD privately from investors, then GLEC would own 50%, and other GECO investors 50%. Or if GECO investors got a 10% discount as incentives to invest directly into GECO, then it would be 40%/60% for example (math is different but you should get the idea).

Let's say its 50% GLEC, 50% private - Now if GECO goes from a 2M company to 20M, then the GLEC ownership of GECO would be entitled to half the cashflow / valuation of the company since it owns 50%. And then GLEC would distribute that to its investors, i.e. everyone on this board.

Before you ask why private money was raised and GLEC cut down to 50%, it's because thats how you raise money...and if the money wasn't raised, then the company would already be dead.