I recently received an email from an investor who was seeking to purchase a shell. His criteria list was right on the money and I thought I should share it with you.

Dear Ralph;

I was referred to your firm from a contact I made on a Reverse Merger Blog. I am a U.S. based investor with an established track record, looking to acquire several clean public shell companies. I am willing to pay top dollar for the right shells. The following criteria are some of the necessary requirements to find a public shell that is suitable:

1) Listing on OTC Bulletin Board (OTCBB)

2) 300 shareholders or greater

3) Current principals of public shell have no criminal record and civil litigation related to the company.

4) No outstanding litigation against the company or its principals.

5) The shell has no liens, based on our review of UCC filings. If there are liens, the company must extinguish those liens prior to closing.

6) There are no ongoing SEC investigations or inquiries.

7) We must try to purchase between 90% and 95% of the shares outstanding.

The remaining public “float” should be in the 500,000 to 1,000,000 shares.

9) The shell must have audited financial statements for the previous three years and up to date public SEC filings, i.e. 10-K and 10-Q. In addition, the directors of the public shell must be current on their Form 3 and Form 4 filings (Form 3 is for initial insider ownership and any changes in ownership reported on Form 4).

10) Preferably we want the shell incorporated in Florida or Delaware.

11) It would be preferable if the shell was a former operating business that no longer has operations. Some shells were organized strictly for the purpose of merging with an operating business (SB-2 offering), these are not usually suitable for our criteria.

www.reverseshellmerger.com

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