Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Microcap & Penny Stocks : 504 Reg D and Beyond - Going public without an Underwriter -- Ignore unavailable to you. Want to Upgrade?

To: american dreamer who wrote (43)	7/16/1998 9:41:00 AM
From: PitBull	Respond to of 50

Thank you for your answers. No I am not contemplating a 504. I am just trying to understand the process. I have read a lot about IPOS, but am trying to understand the process. I don't know if an IPO would be the same as this or not. For example, there is a mutual fund that has a portfolio of IPOS, I don't know if the IPOS are a result of the usual way, or the 504 way, and maybe I can understand this better now, maybe not. as for question 14 14. Does the float get smaller & stay smaller, or do additional shares end up getting printed which essentially negates the growing value of the stock? you said This question makes no sense. :) I am glad my other questions made sense..:) What I was getting at is that in a reverse split the float is reduced so I assumed it was the same for a reverse merger. However I have also seen OTC companies that did reverse splits & ended up later introducing more shares into the pool, or at least it appeared that way. I am reading an interesting book about the story of Wit Beer and Wit Capitol ...I don't know if their process of going public relates to "504" or not.Eventually I'll understand. I'm a slow learner on some stuff. Thank you again for your time and answers.

To: american dreamer who wrote (43)	7/16/1998 10:01:00 PM
From: micky	Read Replies (1) \| Respond to 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)