Everything you need to know about Reverse Shell Mergers by Ralph Amato
Hot off the presses. The first review of the new 51-509 revised rule by a law firm. This Securities Law Bulletin article was written by Clark Wilson LLP. According to this article it appears the newly revised rule is definitely going into effect on September 15, 2008.
U.S. OTC ISSUERS WITH CONNECTION TO BC BECOME [...]
A partial quote from the BCSC website – http://www.bcsc.bc.ca/policy.aspx?id=6544
PART 3 – RESALE OF PRIVATE PLACEMENT SECURITIES
Resale of Seed Stock
10 (1) The exemptions in securities legislation from the registration requirement or the prospectus requirement does not apply to a trade of a security of an OTC reporting issuer on or after the ticker-symbol date, if the [...]
I have been dealing with consultants and attorney’s for Chinese Buyers for about a year now and the consensus is that “they don’t get it” when it comes to purchasing an OTCBB shell. Now I know this partially due to cultural differences but someone needs to explain to them how the system works. [...]
I have not seen a better time to buy an OTCBB shell than now. There are a number of shells to choose from and the prices have dropped approximately $100K from their previous highs for shells that are delivering 51% to 80%. Usually, I am constantly seeking qualified shells for my Buyers but [...]
So far this year the supply side of OTCBB shells has been robust. There appears to be a softening in the marketplace that has taken place in the first four months of this year. I attribute this partly to the confusion regarding the SEC’s new stance on rule 415 and its effect on PIPE financings [...]
Reverse mergers have a chequered past. During the 1970s and 1980s unscrupulous promoters used reverse shell mergers to deceive investors… they would form new public shells, raise money from investors, and then take that money in the form of fees, salaries, perks and other “management fees”. In many cases, investors were bilked out of millions [...]
So what are the main differences between OTCBB and Pink Sheet shells? There are several and it is like comparing apple to oranges. Let me explain.
OTCBB Shells
Over the Counter Bulletin Board (OTCBB) shells are public companies that are fully reporting. In other words they file quarterly reports (10Q) and annual reports (10K) [...]
The U.S. Securities and Exchange Commission (SEC) has suspended trading for 35 companies that allegedly benefited from spam e-mail campaigns to hype their stocks.
The SEC stated in a news release on March 8th that “This is the largest number of companies (35) ever suspended at one time for having their stock hyped by spam”. The [...]
2007 should be a banner year for reverse mergers. OTCBB shells have a bright future according to the information we recently reviewed.
2006 OTCBB Statistics
The following information has been compiled using statistics from the OTCBB activity reports. To the best of our ability here is what we have been able to uncover. This will give our [...]
According to Tim Keating, President of Keating Investments, LLC, “The reverse merger industry has gone through a dramatic transformation over the last three years from infamy to legitimacy”.
So how did this ugly duckling transform itself into a swan? Over the past several years there have been several changes made by the Securities and Exchange [...]
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