Revolutionary Concepts Inc (fka REVO)

[Krysti]

Acquisition of Greenwood by REVO was the deal.
Greenwood was valued at $18m by its owners (Rainco) because of it's assets and cash flow.
The owners of Greenwood declared that they expected earnings of $3m for 2012, and that the company's earnings would continue at that level into 2013. They also said that it had operating costs of $7m or so in 2012.

Based on those figures REVO gave $18m of preference shares to Rainco in return for Greenwood.

It's hard to see how Rainco can justify its statements about Greenwood, if the company was formed in November 2012 and sold in December.

That makes it hard to see how REVO can lay claim to the income flow of it's subsidiary, until the source and amount of that income flow has been clarified.