Post by
PercySweetwater on Sep 14, 2020 5:00pm
A hypothesis...
DM is an AI company and not in the business of performing covid tests, so they set up a separate company who will actually perform the tests (Screen Pro). This new company requires start-up capital so they sell some shares in a private placement (Ryu sells some DM shares, so that he can participate in the PP).
DM has contractual arrangements with test kit suppliers, so DM buys the test kits and resells them to Screen Pro.
Everyone wins in this scenario: DM continues to generate cash from test kit sales to support it's AI development; Screen Pro can provide a total testing solution (test kits and actual testing) to worldwide markets; DM shareholders benefit as DM continues to generate revenue from test kit sales and DM also owns a chunk of Screen Pro (hopefully increasing DM stock price).
Just a hypothesis.
Comment by
Arbourmark on Sep 14, 2020 6:22pm
Because GBLC will have same issues as DM, material change from business model causing issues with TSX exchange, not hard to figure out.