Gary,
It's great to see a thread of this nature with such good direction. I've been burned many times in the past with "hot" newsletter deals, etc. For the last few years I have invested in only private companies to avoid all the hype. But I have chosen to invest only with companies that have a stated goal of going public. Yes, I've been burned there too, but I love the differential between public and private valuations and the instant reward for patience. Recently, I've looked for private deals with reverse mergers tied to them. that way I can see the liquidity and public valuation in the near future.
While evaluating a high-tech investment I came upon a pharmaceutical deal that is doing a reverse takeover. The reason I share this with you now is because I'd like help with the DD. The only problem is that the announcement for the merger is being made tomorrow and I've been sworn to secrecy about the company until then. Because timing is short, I'd like to present some info here and then tell you at the open tomorrow what the company is in order to stay out of trouble.
The shell is a 12(g) company (not quite sure what that means) that is fully-reporting and trading on the OTC. All fillings are current. The interesting thing is that it has been eight years since the company has been "in business." I was told that this was important because it is a very "clean" shell whose statute of limitations has expired, thereby preventing any skeletons from coming out of the closet. the shell is in the medical industry and is being offered by the same people that brought us Hollis-Eden Pharmaceuticals (HEPH) which had an incredible run-up upon becoming public. The shell has no debt. In fact, I believe that it has cash in it. I'm not sure about the float, but there are a lot of shares.
The private company that is taking this shell sounds like it has real potential - might get the interest of those "Real World Retail Brokers." They have the exclusive rights to liquid ibuprofen which allows ibuprofen to be used in IV's, injections, inhalers, etc. The suspensions on the market don't allow for these uses. There are "consultants" involved but no deal with stock promoters.
I'm sorry that I can't divulge more, but look for me to post in the a.m. if an announcement is made. After that, I would greatly appreciate ANY advice. I'm very familiar with reverse mergers, but always seek help in DD on specific companies/shells. You guys appear to be very good at it.
Thanks, Clo |
