As far as we can tell any shells coming out of Canada after September 15, 2008 that contains 100% Canadian shareholders will be 100% restricted. This brings up some pretty interesting questions.

  1. Can a company that has 100% Canadian shareholders get approved for trading by FINRA after the revised rule goes effective?

  2. If a company has a shell previously approved for trading prior to the rule change are those Canadian shareholders subject to the new “legend” rule on their already freely tradable securities.

  3. If your company gains trading approval from FINRA after September 15, 2008 would not the entire float of a company that is composed of Canadian shareholders require (i) all of those shares to have a legend placed upon the stock certificate and (ii) the shares to be placed with a licensed NASD Broker Dealer to become freely tradable electronically and (iii) shareholders not to sell their shares in a private transaction for over a year?


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