OTC BB Press Releases - April 17, 2007 (part 3)
AGNM:OB - Acrongenomics Partner Molecular Vision Successful in Winning Prestigious Award from the UK Royal Society
COCBF:OB - Coastal Petroleum Company's Letter of Intent With Victory Energy Corporation Expires
CTIG:OB - GlobalPhone and CTI Group Partner to Provide SmartRecord IP
CSKI:OB - China Sky One Medical Announces Murrell, Hall, McIntosh & Co., PLLP as New Accounting Firm
ELEC:OB - S. Miller Williams Joins eLEC's Board of Directors
FCON:OB - Seeking Alpha Launches Free FinancialContent Powered Stock Quote Widget for Financial Bloggers
EMEC:OB - Entrex Index Fund Realigns to Royalty Investments in Private Companies
EGLF:OB - Element 21 Golf Company Appoints Golf Industry Veteran Mary E. Bryan to its Board of Directors
KALG:OB - 321Energy.com Announces Coverage of KAL Energy
LGCP:OB - Lincoln Gold Corp.: JDS Gold Property Drilling Back on Schedule
LTUS:OB - Lotus Pharmaceuticals Releases Audited Annual Report With $36 Million in Revenues and $4.1 Million in Net Profits
LWLL:OB - Market Advisors April 2007 Research Report With 12-Month Price Target of $0.62 for Linkwell Corporation Is Now Available on Linkwell's Website
PLKH:OB - ProLink Holdings Corp. Reports Record Revenue of $23.4 Million; 45 Percent Increase Over 2005
PTQMF:OB - Petaquilla Minerals Ltd. to Present at the European Gold Forum
QPCI:OB - QPC LASERS, INC. to Present at Taglich Brothers 4th Annual Small Cap Equity Conference
REED:OB - REEDS, INC. to Present at Taglich Brothers 4th Annual Small Cap Equity Conference
SOTK:OB - Sono-Tek Offers New Line of Ultrasonic Spray Dryers for Laboratory Use
WIZD:OB - Wizzard Software Hires Advertising Sales Veteran to Lead Wizzard Media's Advertising Sales Program
posted by km @ 4:06 PM
2 Comments
2 Comments:
I have a new article on reverse mergers available. I discuss Form 10 shells and OTCBB mergers. I also speak to one CEO of a solar company, Peter Klamka, who works in reverse mergers.
A few years ago, it seemed that nearly every company was going public with an IPO to gain capital investment, but now, with this route effectively blocked to smaller companies, entrepreneurs, angel investors and employees are increasingly looking at the opportunity of a reverse merger with a trading shell on the OTC Bulletin Board, the Pink Sheets or Form 10.
Through the reverse merger, your private company merges into a publicly listed company called a “shell” and gains control. This gives you listed stock that can be leveraged to raise capital.
This whole process might seem shady, but it is not, indeed many well-known companies have gone public through a reverse merger process including Warren Buffett's Berkshire Hathaway, Turner Broadcasting System, Occidental Petroleum, Blockbuster Entertainment and even American Idol
Investor Peter Klamka of Ann Arbor, Michigan a large shareholder in fast growing solar energy and reverse merger company Girasolar Inc (OTC: GRSR) stated that he thinks “the best way to go public in the current climate for most private companies, is with a Form 10 shell. It can be the least expensive method with the opportunity to avoid problems associated with most trading shells.”
At a purchase cost of approximately $50-$100,000, a Form 10 blank check shell company is an attractive vehicle for private companies searching for a route onto the public markets. But, under the purview of the Worm/Wulff Letters, blank check shares are prevented from instantaneously trading after Form 10-SB shells complete a reverse merger with a private firm, regardless of how long the shells have been reporting public companies.
The alternative is an already trading shell listed on the Pink Sheets or OTCBB, which, with acquisition costs ranging from $150K up to $1 Million is a much more expensive option.
The greatest benefit of using a Form 10 shell company as your route to public ownership is that the purchasing company will retain most if not all of the stock in the shell. Overall the process takes longer, but is ultimately a much better deal for shareholders and the company alike.
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