In the mid of October, Dematco Inc. announced that its wholly owned subsidiary Dematco Group Corp. has developed the transaction with First Corp., which was arranged in July 2009. By this transaction, Dematco has enabled First Corp to acquire through a share exchange the entire issued share capital of the BVI-registered investment company Acquma Holdings Limited. This is a significant change from the previous agreement between the companies, whereby First Corporation was to acquire only 10% of the BVI company.
The share exchange between Acquma and First Corp. is a total of four new First Corp. shares for each Acquma share, resulting in the issue of 64,437,848 new shares of common stock in First Corp. By terms of the deal, Dematco receives a total remuneration of 7,050,000 shares of common stock in First Corporation. The company has already received, for earlier arrangements between First Corp. and Acquma, 440,000 ordinary shares of the BVI company. The Acquma shares received by Dematco will convert into 1,760,000 new shares of First Corp. Upon the consummation of the agreement, the Board of directors of the BVI company will join the Board of First Corp.
First Corp. is a Colorado corporation whose activities are limited to organization and capital formation. Acquma is a private investment firm which currently owns 18.3% of a private Finnish company, Tramigo Oy Ltd. The agreement enables Acquma to establish market value for their holdings in Tramigo, as well as gives Dematco a significant boost to its balance sheet.
