Thursday, November 24, 2005

How can someone be selling a public company for $38,500??

Going Public
Reporting public company for sale
$38,500 US for 100%. Find out more

This is an ad that always seems to come up on google during searches for OTCBB, going public, shell companies, reverse merger, and similar searches.

A company where one shareholder has 100% of the stock, is what is called a "grey sheet".

Googled 'grey sheet' and found a great explanation...

Grey Sheet Shell Companies

A Grey Sheet Shell Company is a term of art or colloquialism used throughout the corporate finance industry. It is not a trading forum. Technically it is a Pink Sheet Shell that has not filed a 15c2-11 and is "non-piggyback qualified." This means that each market maker is responsible for conducting their own due diligence and cannot rely upon the due diligence of another market maker who has previously quoted a bid or ask price for the stock. Also, all orders to purchase the accompanying stock must be unsolicited.

A Grey Sheet is a non-reporting entity and is sought out by companies who are interested in going public in the sense that they have a symbol, transfer agent and shareholder base, but do not have the immediate need for high liquidity and high trading volume of their stock. It is a vehicle for companies in need of capital in the amount of $1 million or less and can be ideal for conducting Rule 504 registered public offerings; Rule 504 accredited investor offerings and similar exempt intra-state offerings.

Continued.. (much longer...)

<< out of the blue...>>

Taking a company public is never easy, but at least when you are a big company doing an IPO, there are all the advisors and VC’s (venture capitalists) and hotshots around, not to mention all the people and their dough who came in by purchasing stock before the IPO...

Taking a small business public, whether on the OTCBB or on the pink sheets, however, is another matter. It’s not easy, there are lots of decisions to be made, ups and downs as the timeline seems to expand and contract....

We will discuss there issues. I hope you will find this blog useful in your decision-making and in your research.

Since I am not involved in taking companies public, I feel I can be unbiased, sharing information and PR strategies as well.

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