Excellent explanation RockRoll! I had posted something about that back in June when it came up in discussion.
Initially Poolworks was valued at somewhere in the 40+ million range and the purchase price was set at 10mil and Vert capital was to receive a 10 mil aggregate "or" 20% of common stock.
Then after the acquisition MMEG's accounting firm determined that the 40+ mil Goodwill asset was not realizable and re-valued Poolworks much much lower and basically turned the goodwill asset into a liability because of the lower valuation. Then another filing came out with the re-evaluation and it said that Vert Capital would get 20% of the common stock instead of the 10 mil aggregate. Now, the fact that Vert acquired 20% instead of the 10mil is excellent, excellent news because I'm sure Vert saw more value in 20% than the 10 million and Vert is HOLDING the shares.
To my knowledge goodwill asset impairment is hardly seen in penny stocks and the fact that Vert and MMEG handled it this way shows they know exactly what they're doing and IMO it was probably planned from the beginning and is now a huge tax write off for Momentous.
It's usually seen in big companies, in fact Microsoft did the EXACT same thing when it acquired Nokia in 2013.
Also Vert acquiring 20% has good merit. When I saw the Poolworks transaction being handled in this way it gave me even more confidence in holding MMEG Stock.
$MMEG!
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