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To: Awiseone who wrote (303)6/18/1998 2:06:00 PM
From: TraderGreg  Respond to of 389
 
That I can't answer . But then why are all these shells so popular. They offer years of tax losses to the new owners and those shell don't result in 50% dilution. Most reverse mergers dilute a max of 20%(otherwise the private company would have gone public on their own).

I have heard they have to keep the business going two years. I wonder if they get the carryforward tax losses during those two years (assuming they were otherwise profitable) or do they have to wait two years to get them.

TG.