SOUNDS AND LOOKS LIKE A REVERSE MERGER TO ME!
Scottsdale, Arizona, June 21, 2013/ -- Diversified Mortgage Workout Corp, (DMWK) -- a public company trading on the US OTC ? today announced its change of control of the corporation to Arem Pacific Corporation, a corporation in Scottsdale, Arizona ?
Thomas Tang, the President of Arem Pacific Corporation, commented, "We are very pleased with this transaction and we look forward to bringing more value to the Company."
Diversified Mortgage Workout Corporation (PINKSHEETS: DMWK) today announced its name formally changed to Arem Pacific Corporation, effective Monday, July 29. Mr. Thomas Tang has been elected to be the new president, effective immediately. More news releases will follow to introduce the new ticker symbol, new management team, board members and new company businesses.
Todays announcement about the new share structure will go with the new ticker symbol!
This board should be lit!
WHAT IS A REVERSE MERGER?
A Reverse Merger is a transaction where by the private company shareholders may gain control of a public company by merging it in with their private company. The private company shareholders receive a substantial majority of the shares of the public company (normally 85% to 90% or more) and the control of the board of directors. The transaction can be accomplished in as little as two weeks, resulting in the private company becoming a public company. The transaction does not go through a review process with state and federal regulators because the public company has already completed the process. The transaction involves the private and shell company exchanging information on each other, negotiating the merger terms, and signing a share exchange agreement. At the closing the public shell company issues a substantial majority of its shares and the board control to the shareholders of the private company. The private company shareholders pay for the shell and contribute their private company shares to the shell company and the private company is now public.
Upon completion of the reverse merger, the name of the shell company is usually changed to the name of the private company. If the shell company has a trading symbol it is changed to reflect the name change. An information statement, called an 8-K, must be filed within 15 days of the closing. The 8-K describes the newly combined company, stock issued, information of new officers and directors, and financial statements audited to US GAAP, standards. The 8-K must disclose the same type of information that it would be required to provide in registering a class of securities under the Securities Exchange Act of 1934.
