Have an asset that isn't being utilized so am exploring terms w/ operators that can create a potentially profitable business w/ this asset. We would be passive shareholders they would do all the operating.
Asset would be transferred to a NewCo. which would then sell 60% of shares to the operators.
Payment terms are 1/3 Downpayment at the signing of the contract. But then here's the part that I'm not getting, they want to pay the remaining 2/3 as an advancement of my share of future dividends.
I was taken aback by this proposal, shouldn't payment come from their share of dividends? Why should payment of 60% of my asset come from my future earnings? Considering not partnering w/ these guys.
Am I exaggerating or is this more common than I think.
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