The Mach 3 announcement and security exchange filing is very interesting. I do not understand the relationship between EYII.OB a public traded company and essentially Yours Industries (international) Limited a subsidiary of EYI.OB. If EYI does 40 million in Ultimate ME2 sales, how does that reflect on both companies? Is their a direct relationship? Or a direct coorelation to EYII.OB. Can the subsidiary profits not be reflected by the public traded company.
What are the advantages for the company or management personell of the company to have it set up this way? Why would a company be set up this way? Is this done very frequently by companies.
The new agreement filed with Mach 3 with the Security Exchange Commission has a The Licensing Compensation section and is between the subsidiary of EYI.OB and Mach 3. The distributor intends to restructure its capitalization by increasing its authorized shares to 30 million shares. In lieu of a licensing fee, the distributor agrees to award and issue Mach 3 five percent of its total outstanding shares upon successful completion of the restructure.
How does that affect EYII.OB? Are their profits for the subsidiary that will be paid to Mach 3 before it is reflected in the Public traded company EYII. If profits for the subsidiary are great would that reflect on the stock price of EYII.
Thanks for your answers to what I consider hard to understnad relationships between the two companies and the stock price and earnings.
Larry