I am trying to understand this whole transaction. The way I read it, EXTO has taken TACG under its wing, and for that we (EXTO) have issued shares and warrants to TACG. Then we (EXTO) are issuing 20% of the new company (TACG) to EXTO shareholders. I assume from this, that EXTO is retaining the other 80%.
1) Wouldn't the issuance of the TACG shares to EXTO stockholders decrease the value of EXTO? and,
2) What exactly did TACG get out of this transaction? EXTO shares?
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