Westgate Energy Inc TRGCF

RE:RE:TCI-Livewell Merger

[Ktownskid1]

TCI's CEO is Sonny Mottahad and Sonny Mottahad is also the CEO of 51st Parallel. Motahad is overpaying with TCI shares for 51st because he has more to gain on 51st. He is issuing 51st 1.6 billion TCI shares for  for an application to produce cannabis and a piece of dirt in Lethbridge and $15 million cash and some retail applications in Alberta. At 11 cents that values 51st at $175 million. 

Page 6 of the presentation below has the cap table and transaction structure. Here is the math for you.

Click here to view LivWell International Presentation

https://drive.google.com/open?id=1SXAGZ1KoNM1KIFtkQnVLBwhHgJDb2Pht

-  After the transaction TCI/Livwell will have 2.1 billion basic shares
- TCI currently has 96 million shares basic
- $50 million financing at $0.11 per share would account for 450 million new shares.

This mean TCI is issuing 51st 1.6 billion TCI shares.

How is this even legal most would ask. A related party transaction diluting TCI shareholders to less than 5% ownership post RTO.

And tack on another 318 million performance warrants and 31 million options for 51st for good measure bringing TCI shareholder ownership down to under 4%.

How can anyone other than the promoters who own all the 51st shares defend this deal as a good transaction for TCI shareholders? TCI shareholders should be calling the Ontario Securities Commission and reporting this transaction.