formatting text file

[r0ssar00]

i have a text file which has many many lines, but these lines have a specific format to them, each text section may contain anything except $ and #, which means spaces may be included

code:

$some text#sometext#sometext#w329084701928347109283471234701923847109283

but the problem is, the last section after the last # can extend to multiple lines, i need a piece of code that will read through the file and have each line that starts with $ on its own line with all of the data for that item on the same line
so given the data

code:

$sometext#sometext#sometext#w3290847019283471092834712347019238471092832198743912714092 1702398471092837410982374091827304981723098471092387410982374091837204981723098471098237491823 813704982739841709238741982374019832740918237401982734917 $more text#moretext#evenmoretext#984741098237409182374019823740198237409817398147239874109823740198723409812734981702943 $lasttext#text#text#0894719382470192834701923847019823750198237401982374098123740981723409 41982734981073298471098234709182374098170329847198237409812374908173409710923847189324

it should look like this

code:

$sometext#sometext#sometext#w32908470192834710928347123470192384710928321987439127140921702398471092837410982374091827304981723098471092387410982374091837204981723098471098237491823813704982739841709238741982374019832740918237401982734917 $more text#moretext#evenmoretext#984741098237409182374019823740198237409817398147239874109823740198723409812734981702943 $lasttext#text#text#089471938247019283470192384701982375019823740198237409812374098172340941982734981073298471098234709182374098170329847198237409812374908173409710923847189324

each line beginning with $ is one line, everything that follows until the next $ is part of the same line

[r0ssar00]

forgot to mention one thing, where it says "it should look like this" i mean the final result when run through the algorithm
the code should output to file
thanks