Stay Legal! New SEC Rules
Recent changes in key securities laws have
altered the desirable features for shells
most efficiently used in reverse mergers.
The shell you can use most efficiently will
be clean, have at least 300 shareholders
and should not be reporting or trading now.
Under most recent SEC and NASD rulings regarding
public trading, the features of a "shell
corporation" that are necessary to get
a company public, quickly and cheaply, and
to allow the sale of a portion of the shares
received for the business include:
Only a securities attorney should express
an expert opinion as to how a specific shell corporation is legally and efficiently
utilized to complete a reverse merger transaction
with a specific private company. However new securities
laws suggest some clear priorities when planning
for the most efficient transaction:
Shareholder base
Necessary. Minimum is 300.
Trading Status
A symbol will need to be assigned by NASDAQ/OTCBB
following effectiveness with the SEC.
Reporting status
Unnecessary and undesirable as it will increase
cost and slow the process.