I like this part in particular from that document:
"Generally, interest expense on funds borrowed to acquire shares in a corporation is deductible to the borrower. Accordingly, a non-resident is often advised to set up a Canadian holding company to borrow the funds required to make a share acquisition. Once the acquisition has been completed, it might be possible to have the acquired company wound-up into or merged with the holding company, thus enabling interest expense to be offset against the acquired company’s earnings."
Because that is exactly what they did. And, yeah, it is also what someone would do with two foreign owners as well, but why wouldn't it be enough to buy a Canadian company? What other reasons to start a holding company other than to buy commons for tax reasons or the reverse-merger scenario?
------
As for the "secret DD" if that refers to the document I was looking for, I was referring to the signed intent to purchase document that was in a bundle of documents also including the final but not approved by judge offer with the blacked out price.
This DD is Not in the least secret. Just close reading and thoughtful risk/benefit analysis and I know full well that even with a handful of assurances in documented intent that promises gains, it could still go right down the toilet. IMO IMO IMO
