Replies to post #34364 on Momentous Entertainment Group (fka MMEG)

[stockless]

I'll say this to try and answer my own questions about this so called 40 million dollar debt. If it is true, I did not see any terms to pay it back. Any one else see something I missed.

[TheRealMrPirate]

Stockless, go back several months & research as much as you can. You're right, there are no terms because $MMEG does not owe or have $40M in debt. The Poolworks deal was held up to renegotiate that debt with creditors at that time. Poolworks was in money trouble hence why $MMEG was able to get it at a fraction of it's value. The deal did not close with $MMEG owing $40M or assuming $40M in debt.

[Marxbys]

In relation to the $40million question: Pirate&Winnotlose are correct IMO. From what I understand upon closing Poolworks MMEG initially realized an increase or asset in goodwill of $40+ million and negotiated a sales price of $10 million (in other words MMEG bought a $40 million company for $10 million) The 10 million was to be paid to Vert Capital in preferred stock convertible to 67,783,870 shares of common stock OR 20% of MMEG's fully diluted issued and outstanding common stock* whichever is greater upon the conversion date. (*does not include authorized un-issued shares). However, a recent "re-evaluation" of Poolworks revealed that the initial perceived 40 million goodwill asset is not realizable. Therefore MMEG's accounting expensed it as an impairment to an asset (AKA Tax write off or loss). Subsequently Poolworks was re-evaluated down from a $10 million purchase price to a $2,305,000 purchase price (per last 10-QA).
Microsoft did the exact same type thing when it purchased Nokia in 2013. Microsoft initially recognized a goodwill increase of 5.5 billion but could not capitalize on it then in 2015 they listed it as an impairment loss on their financial statements.
IMO, MMEG & Vert have done everything right in structuring this Poolworks acquisition to benefit both themselves and shareholders and the 40 mil showing up on the financial statements is just a formality.
At the end of the day, MMEG & its shareholders acquire Poolworks for only $2,305,000 (or .23 cents per user!) and Vert now owns 164,391,684 shares of MMEG common stock instead of only 67,783,870 shares. Not only that but now MMEG & its shareholders have a HUGE tax advantage and are going to need it when the revenues begin to pour in. MMEG is NOT 40 mil in debt but simply got an outstanding super good deal on Poolworks making MMEG extremely undervalued! It's simply good business dealings with our brilliant CEO & management looking out for its shareholders and its growing company. Does anyone see anything wrong with this picture?

$MMEG$!!! UNDERVALUED!!!