Aethlon Medical Inc (AEMD)

[dyp]

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How a reverse merger works:
1.Existing Public Company A creates wholly-owned Subsidiary B

2.Stockholders of acquiring Private Company C negotiate with the shareholders of Public Company A in to merge with Subsidiary B

3.Private Company C merges into Subsidiary B, with the Public Company A surviving and shares issued to shareholders of Private Company C

4.Private Company C becomes a wholly-owned subsidiary of the Public Company A with the controlling stockholders of Private Company C usually owning 90% or more of the Public Company A and Public Company A ‘s shareholders owning the remainder

5.Private Company C’s management team becomes the directors and officers of the public company