GREY:MOTNF - Post by User
Post by
DanielDarden123on May 28, 2020 10:43am
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Post# 31082596
Slimy Stuff
Slimy StuffFurthermore, the Company announces that it entered into a definitive agreement on May 24, 2020, (the “Agreement”) to acquire all of the issued and outstanding shares of privately-held Bendu Capital Limited (“Bendu”) a non-arm’s length party to the Company, to be effected by way of a three-cornered amalgamation between Organic Flower, Bendu and a wholly-owned subsidiary of Organic Flower (the “Transaction”). The Transaction is valued at 75,850,000 pre-Consolidation Shares of Organic Flower, giving the Transaction an approximate dollar value of $3,034,000 as of the Company’s closing price on May 22, 2020. (From press release)
My take: An insider gets to unload a liability (likely) and gets free shares in exchange. The directors are usually not truly independent so their approval is meaningless. Notice that no information regarding Bendu is provided. Not even some hype!