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Microcap & Penny Stocks : 504 Reg D and Beyond - Going public without an Underwriter
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To: american dreamer who wrote (43)7/16/1998 10:01:00 PM
From: micky  Read Replies (1) of 50
 
Great response, but do differ with you on a point -- #15, re Can a shell be listed on NASDAQ? your answer was NO.

Know of NASDAQ listed (and reporting) shells, although albeit rare. One in particular that I have experience with is no longer trading (no activity) but fully eligible for NASDAQ assuming proper assets are backed into it via a reverse acquisition.

Re PitBull's #14, about shares in a reverse split, the entire number of shares is reduced, not just the float. The company can subsequently issue shares from the treasury.

Just a reiteration for the Bull, a reverse split has to do with the number of shares outstanding. A reverse acquisition (or reverse merger) is when a private company acquires a public company that is inactive (a shell) as a shortcut (dubious) to becoming public. Two completely different things.

The focus of this thread was to discuss how companies can use the available 504 system to raise private capital, preparatory to filing a l5c 211 via a BD. As already pointed out the process can actually take many forms depending on the company.

Would be interested in any observations about companies you know of that have gone public this way (or a variation)
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