Advantagewon Oil Corp C.AOC

Some news

[Kalidog]

https://www.newsfilecorp.com/release/55798/Advantagewon-Oil-Corp.-Enters-Into-A-Letter-of-Intent-To-Acquire-a-Significant-Tax-Loss-PoolAdvantagewon

 See what happens over the next few days.

[mariners13]

OK. I am going to need some help on this one. I actually was going to take a spin on this at .005 when I saw the volume--and add to my previous folly at a much higher price (from the standpoint of percentages). But I am wondering why they would do this. The dilution at this price is almost funny. But to buy tax loss, this company? I will withhold my laughter thinking there must be something I am

[Kalidog]

So just in speaking with my in-law, who is a tax lawyer, companies will often purchase similar companies who currently have accumulated tax losses. The reason is future planning to write down the tax off of the purchasing company when and if they become profitable. GRL was just your run of the mill smaller company similar to AOC now. The difference is the assets GRL had were not profitable

[Bigoil2113]

Lol, the CEO of our company is the same CEO as groundstar resources. The very same company he ran to the ground, he will use our money to buy the assets of groundstar resources. Lol. What a joke. I don't think this company is going anywhere. Throwing our money away. 

[mariners13]

So, incest is legal on the TSXV.

[GenHandgrenade]

Looks like AOC management is positioning the company for the future. I expect AOC will issue the shares to Ground Star for the 335K at .05 per share. As I understand it thats the minimum share can be issue at without special permission from the exchange. 30 million in tax write off for 7 million AOC shares no wonder the .005 shares were snapped up. 

[fugazzi123]

Before consolidating at a 20:1 R/S should this not be compleated first? does the share price have to be trading at .05 for this all share deal to be accepted by the exchange?

[GenHandgrenade]

It is possible to consolidate before completing the transaction I believe. The shares issuable would be calculated at the .05 rate and consolidated at the applicable rate. So if it was 10 for 1 then the 10 .05 cent shares would become 1 .50 cent share.  Ofcourse all this is just speculation that consolidation talk has sparked the selloff. It may be something else entirely. You would think