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Microcap & Penny Stocks : NBMX - National Boston Medical (was FGRX)
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To: Mr. Fortune who wrote (811)11/4/1998 1:28:00 PM
From: jhild   of 1286
 
I am wondering Mr. F if this may not be a new technique to create multiple non-reporting entities.

You have a company that wants to go public. Rather than file an IPO that carries that uncomfortable burden of complete reporting, you go and buy a shell company.

Well rather than actually buy it, you maybe just rent it so to speak, by then later spinning it back off again as a new entity. Then you are left with two trading entities, where once there was but one.

It's just a thought, but I think the reporting requirements for a spin-off may be different than for a new IPO. If so, then this would be a way to clone non-reporting shells and create even more issues.

The reason I wonder, is because of this apparent sleight of hand that is going on with the dividend, the preferred and the "possible" conversion anticipated in that announcement. It looks to me like the original preferred owners of FGRX will be left back in control again of the alluded to spin off if it occurs, plus the stock that they get in NBMX (the rent so to speak). Meanwhile National Boston has instant liquidity of it's common shares. (Convenient isn't it that the dividend was to be paid to share holders as of a date weeks before they announced it?)
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