Look, if PureRomance wants controlling shares, they will have to issue much more than 200 000 000 shares. Besides, you notice how Mike from DWB's email does not work any more. Kind of fishy eh?
Additionally, many shell companies carry forward what is known as a tax-loss. This means that a loss incurred in previous years can be applied to income in future years. This shelters future income from income taxes. Since most active public companies become dormant public companies after a string of losses, or at least one large one, it is more likely that a shell company will offer this tax shelter.
It is highly unusual to preserve any benefit from the tax loss carry forward in a shell company. The tsx regs. normally reduce the loss carry forward by the percentage of the change in control. In a well structured reverse merger the private company should end up with 95% or more of the stock after the merger, thus reducing the tax loss carry forward by this amount for greater
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