Replies to post #1244 on 5BARz International Inc. (fka BARZ)

[As I See It]

Edgarsmoney asked:

Does anyone know the structure between 5Barz International or "the Company" and the subsidiary 5Barz India once Axis raises the 20M? If and when that 20M is raised 20% ownership of 5Barz India goes to that group. Does that then mean that group gets 20% of 5Barz India revenue moving forward and 5Barz the parent company gets 80%? Does it affect the parent/subsidiary structure any other ways?

It is impossible to comment on this specific deal until it is announced. However, it is common for the revenues and expenses to be shared in a manner that is proportional to the percentage of ownership. One of the many reasons for the formation of the 5BARz India subsidiary is to restrict that sharing to business done in India only. In my "what if" scenarios I have assumed proportional sharing of the business done in India. If 5BARz follows their original business plan, a total of ten subsidiaries will be formed covering all of the geographic areas in which they intend to do business. Whether they sell a portion of those subsidiaries will depend on a variety of factors.

The answer is yes there can be all kinds of complex relationships between a parent company and its subsidiaries.