Sugarmade Inc (SGMD)

[GetRich902902]

Here is some good info about Reverse Mergers

There are many different ways that they can do it. RMN is correct when he says that the best way is with a "virgin shell corporation" and Sugarmade is not considered a "virgin shell." A "virgin shell" is a clean company with no business. But, a reverse merger can also be done with a company with a "little business." The right attorneys can get this done.

But also, a company can “go public” utilizing a “spinoff” which means a private company becomes a subsidiary of an existing public company. For example, Hempistry could becomes a subsidiary of Sugarmade, which then spins off Hempistry along with its shareholder base which creates a new public company. Hempistry becomes a public company by issuing shares of its common stock to Sugarmade which has a base of shareholders. That stock is then registered with the SEC and distributed to the shareholders of Sugarmade as a stock dividend distribution. The "dividends" of the stock of Hempistry is considered a "spinoff" of Sugarmade's shares. Once received by the shareholders, some of these shares begin to be traded, a trading market develops in the stock of Hempistry, and the company is now public. Advantages to this is that Hempistry may be structure to meet the particular needs of Sugarmade.

Not saying this is what's going on. But it is possible. They are definitely up to something and I think it is positive for the investors of Sugarmade.



https://www.siliconinvestor.com/subject.aspx?subjectid=12200

https://investmentbank.com/reverse-mergers/