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Wednesday, May 18, 2011 10:12:16 AM
You know as well as I do he's not paying himself. When a merger happens whether it's a reverse merger or not, the assets of one company has to be transferred to the other company. This is done through the exchange of restricted shares for those assets. If the surviving entity is the merging company then it is a reverse merger.
The shares of a shell like BRZL have no intrinsic value without assets (oil leases). Once the assets are transferred to the shell(BRZL), the remaining non-controlling share are then sold via private placement to improve the value of those assets. All the shares , including the controlling shares are then put up for sale to any large company or investor who wishes to buy those assets.
If the selling price of those assets equates to 1.00/share then the investors who get in on the beginning of the process also get 1.00/share for their shares.
Renfro holdings was created for the management of the assets of Petroleum Capital/Renfro Energy.
The shares of a shell like BRZL have no intrinsic value without assets (oil leases). Once the assets are transferred to the shell(BRZL), the remaining non-controlling share are then sold via private placement to improve the value of those assets. All the shares , including the controlling shares are then put up for sale to any large company or investor who wishes to buy those assets.
If the selling price of those assets equates to 1.00/share then the investors who get in on the beginning of the process also get 1.00/share for their shares.
Renfro holdings was created for the management of the assets of Petroleum Capital/Renfro Energy.
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