How does it usually work when someone has private assets to put into a public shell?
There's a lot of variability in this. In general terms, the shell acquires a new entity (in this case a real estate company I guess) by issuing a large number of shares to the owner of the entity. Typically the shell if it's clean and reporting, would be valued at $500,000 to $2,000,000 in the transaction. In a case like this a quite generous fair value for the shell might be $200,000. So, let's say that the shell is "valued" at $200,000. Let's say the real estate is valued net of debt at $1,800,000. Then enough shares would be issued to the real estate company so that the owner of the real estate company would own 90% of the new company and the existing owners of the shell would own 10%. Also, there is frequently a cash or stock payment of $100-300,000 to the person who facilitated the transaction, but in this case it would appear that the person facilitating the transaction is Megas, so that might be awkward.
Three caveats:
1) There is a LOT of variability in reverse merger deals and valuations.
2) The fact that one person seems to control both the acquirer and acquiree muddies the situation considerably.
3) It's not clear to me why a C Corp is a good structure for a real estate company, but maybe this is a first step toward becoming a REIT.
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