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Microcap & Penny Stocks : Chester Holdings, Ltd. - CHES -- Ignore unavailable to you. Want to Upgrade?

To: HungryMan who wrote (988)	7/18/1999 12:30:00 AM
From: SSP	Read Replies (1) \| Respond to of 1174

Reverse Mergers bring Public Shell Companies back to life. Companies usually go public by finding an underwriter and filing a Registration Statement with the Securities and Exchange Commission (SEC). An alternative method of going public is to effect a reverse merger into a public shell company. When the reverse merger is complete the operating company that wants to be public is merged into the public shell company. The public shell company is the legal surviving corporation. The name of the public company is changed to the name of the former private company and the controlling shares are transferred to the officers of the former private company. The net effect is that the former private operating company is now public with the same business, officers, directors with its shares being traded on the over the counter (OTC) Bulletin Board or on NASDAQ. The old shareholders of the public shell company also benefit; their old worthless shares now have value.