Todos Med Ltd (TOMDF)

[DreyDreyDrey]

That isn’t how it works. You spin it off into it’s own company. If/when that company becomes profitable. It becomes valuable. Maybe a lot. Maybe a little.

At that point. Someone will buy your piece of the company. If you want to sell it. And they offer you the right price. If you reach an agreement. Then you have money and realize a return.

I have see deals structured with management fees and things like that. I think those are mainly wholly owned subsidiaries.

I just learned that Todos wants to buy Dr. Arnat out. So if they they do. And they own 100% of the spin off. They may be able to charge a management fee.

I was consulting for a company that had a profitable wholly owned company. They used to charge a management fee slightly higher than what ever they made every year. So subsidiary makes $3,000,000 that year. They charge it $3,200,000 in management fees. I can’t remember exactly why but there were tax and incentives and government grants if the subsidiary was forced to lose money. And there was a much lower tax liability to suck all the money out of the LLC into the parent S-Corp. i think they would then loan them operating money at 22% interest. All legal. Total corporate rich people shenanigans that make Main Street distrust Wall St. I was consulting on technology infrastructure so not my area. But I could see that it was not an obvious way of making money. Build it for $1 and sell for $2. That is apparently amateur hour.