Nothing Off Topic in explaining how some mergers take place in OTC pink entities, with the CEO owning -51.56% of the public company and being the sole owner of the private company, this is a classic related-party / controlled-company transaction. The process remains possible, but the conflict-of-interest issues become more pronounced and the documentation/protection steps become more important. The core timeline (typically 3–6 months for a straightforward OTC reverse-merger-style deal)
Extra time is often spent on independent committee review, fairness opinion, and more detailed disclosure documents.
If minority shareholders object or litigation is threatened, the process can lengthen.
Practical Risk-- Minority shareholder lawsuits alleging breach of fiduciary duty or unfair dilution.
Regulatory or OTC Markets scrutiny if the deal looks like it primarily benefits the CEO.
Post-deal share structure and control remain heavily concentrated with the CEO.
PL
Source: https://investorshangout.com/post/viewremoved?id=6852228
Extra time is often spent on independent committee review, fairness opinion, and more detailed disclosure documents.
If minority shareholders object or litigation is threatened, the process can lengthen.
Practical Risk-- Minority shareholder lawsuits alleging breach of fiduciary duty or unfair dilution.
Regulatory or OTC Markets scrutiny if the deal looks like it primarily benefits the CEO.
Post-deal share structure and control remain heavily concentrated with the CEO.
PL
Source: https://investorshangout.com/post/viewremoved?id=6852228
