From Edgar on Feb 2nd... I have no idea what to make of this. The revenue sharing sounds fine, since I was thinking cmrc would break even from the direct partnership with GM at best. And what is a "holding company" anyway?
Commerce One and GM will develop, operate and support the GM TradeXchange, an Internet-based trading exchange owned by GM that enables buying and selling over the Internet by GM, its dealers and its suppliers. Commerce One and GM will share equally in the net revenues generated by the GM TradeXchange, after the repayment of both parties' expenses, for an anticipated ten-year term.
In connection with the TradeXchange Agreements between Commerce One and GM, Commerce One intends to restructure itself into a holding company that will be listed on Nasdaq and will trade under Commerce One's existing Nasdaq symbol, CMRC. As part of the restructuring, all of Commerce One's shares of common stock will automatically become shares of the holding company common stock following Commerce One stockholder approval of the restructuring at a conversion rate of one for one. Upon the signing of the TradeXchange Agreements, the holding company issued 14,400,000 shares of common stock to GM, 7,200,000 shares of which be held in escrow until the GM TradeXchange has repaid the accumulated investments by both Commerce One and GM in developing the GM TradeXchange operations. The shares of the holding company stock issued to GM will generally not be freely transferable for three (3) years.
www2.techstocks.com |
