Thanks PVLee, my post wasn't quite clear (guess I should do a little proof reading)

What I meant to say was that once these transactions are done we will all hold our existing shares in Zenith Capital Corp and ZCC will own the RVX preferreds and 34.4 million shares of Newco. Newco will then own all the IP and if Newco goes public I would hope that management of ZCC would then distribute the 34.4 million shares of Newco directly to ZCC shareholders on a pro rata basis. This would leave current Zenith shareholders holding their shares in ZCC and holding their shares directly in a public Newco. Since the shares in public Newco would be freely trading, shareholders could make their own decisions as to how many shares in Newco they wanted to keep. These types of transactions occur quite often.

Personally I would like to be holding shares in ZCC and public Newco as it gives one the flexibility to sell some of Newco but still retain the potential of receiving rewards from the royalty preferreds down the road.