That may have been the game plan of the business plan, but the 2005 annual report suggests otherwise.
"In January 2005, the Company obtained certain assets (molds, sales contract, customer base, and patents) from a related party, Promotional Container, Inc. (PCI). PCI is owned by James N. Turek Sr., the Company's president and majority shareholder. Consideration to PCI consisted of a promise to exchange 100,000,000 shares of preferred stock (recorded as $360,000 of preferred stock subscribed in the accompanying balance sheet) in the Company by May 2007 and a promise to pay $500,000 (non interest bearing) by May 2006. Due to common control, paid in capital was reduced by $860,000 to record the transaction."
I understand the "due to common control" clause to suggest both PCI and PLNI were both controlled by JT; one was not a subsidiary of the other. If that is true then in its claim Aztec would have no remedy short of piercing the corporate veil through to JT's other controlling interests. |
