I don't read it that way..."Expo and its subsidiaries will be the primary manufacturing source"
Looks to me like it is totally spun off but EXPO will be the manufacturer of the products and money will be exchanged between the two so ETC can sell the product as a business but hire EXPO to make it????
I tell you, it is confusing, but it seems to me that JD wants ETC totally seperate from EXPH to keep EXPO as a manufacturer and ETC as the owner/distributer of a branded product...If this is his intention, I can see EXPH making "some" money from ETC but that was not explained in the PR....and when I say some, I mean it costs $100 for a cabinet and they charge ETC $120 and ETC gets it and sells it for $300 (numbers are just for show, not real) What was explained was that ETC is gone from EXPO...period...no subsidiary...not counted on EXPO's books...ETC makes the 40% margin profit, not EXPO...
"Certain key assets, including but not limited to certain intellectual property, operating capital, and material handling equipment would be transferred to the new entity." Does this mean EXPO has no claim to the intellectual property anymore? If so they have no claim to any profits from it.....says nothing about manufacturing equipment, just "handling"...like shipping department stuff...
EXPH becomes a dilution tool to fund ETC's initial startup and breaking ETC from EXPO makes ETC debt free to start with all these assets...EXPH gets screwed giving up all these assets once counted on EXPO's books, for the sake of ETC...In 2-3 years EXPH may become what everyone thinks it is now....
My guess is this meeting is going to explain this further and those there will be in the know and see EXPO partitioned off to hold the two companies (I believe it was posted that there would be a tour of several "areas" as part of the meeting)...I don't know though...JMO....