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 [...]

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This entry is part 14 of 15 in the series Buying an OTCBB Shell

Have you considered the pricing of the shares for your PIPE financing?

As I mentioned in my previous Blog we will now look at two scenarios for pricing a company’s stock in preparation of an impending PIPE financing.

OTCBB Stock Priced at $5.00 a [...]

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This entry is part 13 of 15 in the series Buying an OTCBB Shell

Have you determined the pricing range of the shares of the shell?

Many CEO’s have unrealistic perceptions of the value of their company. They vision their stock being worth substantially more than its true inherent market value. The best way to [...]

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This entry is part 12 of 15 in the series Buying an OTCBB Shell10. Does that capitalization take into consideration the effects of dilution if you are going to need additional funding?
Dilution occurs when a company issues additional shares. Shares can be issued for a number of reasons: raising capital, services rendered, or [...]

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This entry is part 11 of 15 in the series Buying an OTCBB Shell9. Are you planning on raising a round of financing through a PIPE transaction?
One of most difficult parts of the going public through a reverse merger process is the capital raise. Many of today’s shell financings are done through what [...]

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This entry is part 10 of 15 in the series Buying an OTCBB Shell8. Have you determined the post effective capitalization of the shell?
This is probably one of the most important decisions you will make as CEO of a public company. How exactly do you value your company? The value you place [...]

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This entry is part 9 of 15 in the series Buying an OTCBB Shell

Do you plan on reversing the shares or forward splitting the shares of the shell you are purchasing?

OTCBB shells are capitalized in many different ways. Even when you buy a shell with a 99% delivery it doesn’t necessarily mean you do [...]

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This entry is part 8 of 15 in the series Buying an OTCBB Shell6. Are there any investors in the float who have a large block of stock?
When you are considering how much of a float you want to remain, you have to consider how many shareholders hold a large block of stock. The [...]

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This entry is part 7 of 15 in the series Buying an OTCBB Shell

How many shares do you want to remain in the float?

This is one of the most interesting topics to discuss because there are varied opinions about how many shares should be left in the float. Once again this depends on the [...]

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This entry is part 6 of 15 in the series Buying an OTCBB Shell

Is it important that free trading shares from non affiliates be included as part of the shell purchase?

When you are considering the purchase of a shell it is important to assess what your needs are. In many cases your needs will [...]

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