Once an entrepreneur decides that the reverse shell merger route is the course to take for their company there are several next steps to consider:

  • Hire a financial consultant that is experienced in all aspects of reverse shell mergers. The old adage “an ounce of prevention is worth a pound of cure” is especially true when it comes to dealing with the purchase of an OTCBB shell.

  • Make sure you have completed an audit of your company’s past two years financials by an approved PCAOB accounting firm BEFORE you embark on purchasing your shell. This is required by the SEC and you only have four days to file your audited financials with the SEC after you purchase the shell.

  • Hire a good SEC attorney to review prospective shells and perform the due diligence.

  • Then start the process of reviewing shell candidates. Your consultant can help you to determine the criteria for the shell you will need.

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