CORRECTION Related Party Transaction
Erdene currently owns approximately 60% of the issued and outstanding shares of APM.
one more correction. ERD already owns 60% of APD.V . Hence only 40% of APM shares are held by outsiders. That is 40% of 1,354,539 . which is 541,815 shares.
Hence the summary of shareholders in new company- SHARES
OUTSIDE SHARE HOLDERS 541,815
ERD OWNS 60% 827,724
ERD SHAREHOLDERS 47,886,451
TOTAL SHARES 49,255,990
THIS IS A VERY SMALL PRICE IN NUMBER OF SHARES HELD BY OUTSIDER 541,815. SLIGHTLY OVER 1%.I HOPE THIS CLARIFIES THE SITUATION This happens all the time in the securities industry. To for a new trading vehicle on the stock exchange can take 6 to 12 months to get a trading vehicle approved .
Hence a lot of time companies look for an existing trading vehicle on the exchange with limited assets. They take this company over, roll back the shares and the add a new asset in the company
APD.V has at the present 26,334,963 shares trading. On consolidation the existing share holders are being consolidated by approx 20 times. On consolidation the no of shares held by existing shareholder is 1,354,539. representing 2.75% of the total proposed shares.
hence say you value the 1/2 share at say 15cts. 1,354,539 @15cts =$203180.
hence to get an existing trading vehicle cost you approx $200,000.
This is how it works