How will Persistence report its Financials ? Persistence has no ownership in Majestic but Majestic will own 75% of Persistence after the IPO.
Accordingly, Majestic will continue to record its financials in terms of non controlling interests, as it does Zonglia.
That is, Zonglia and Persistence will be the non controlling interests .
I presume that Persistence will report its profits or losses by the equity method .....for its 25% ownership of of Persistence.
Once the acquired gold mines are operational, those will be separated and placed into a subsidiary JV with Majestic as the foreign partner.
That will still be 75% owned by Majestic as the controlling shareholder.
At least this is my understanding.
Of course, Persistence will probably continue to dilute to raise capital in which case Majestic working interests may drop below 50%.
With oodles of cash, this May also be done by Convertible Debt issued to Persistence by Majestic which would secure Majestics controlling shareholder status.
What all of this says is that Majestic, as the controlling shareholder, will be the only one reporting the full financials of assets from which Persistence will generate its equity based earnings until such a time as Majestics working interests fall below 50%.
I don't think that will be any time soon.