Let's forget for a moment that all these people involved in the deal are in bed together, and these deals between shells is basically "financial incest."
NMGL and FFGO decide to deal for the claims.
Neither has money.
FFGO sets a ridiculous price.
NMGL comes up with the payment by...now here's the funny part...
...creating a ton of shares out of thin air, and deeming them to be worth X amount of money. It may as well have been Monopoly money.
I mean, I think I might start my own shell corporation today and "deem" my stock to be worth a gazillion dollars per share!!
No legitimate company would take payment for assets in this manner. Cash or common stock, but not like this....
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