To: TraderGreg who wrote (9513 ) 9/22/1998 3:26:00 PM From: Jorge Garza Read Replies (3) | Respond to
I have been through this with another company. They spun off a subsidiary in the form of a dividend. They had to file a registration statement so that the stock would be registered and could trade. They ran out of money before the registration statement was finished going through the SEC approval process. They did file a complete registration statement, I believe it was an S-18. They then got the usual 1st response from the SEC about 6 weeks later which is normal and always requests additional information. They then answered those questions and re-submitted the statement and then some 8 weeks later recieved a second request for additional information. These registration statements must be prepared by an SEC approved attorney and any financial information must be prepared by an SEC approved CPA. Both the attorney and cpa must go through some sort of liscensing process before they are approved. It was discovered during the second SEC review process that the CPA had once prepared a financial projection for the Parent company and was therefore disqualified from the process. He had already been paid in full. The company was out of money at this point. I still have the certificate of the spun-off company because they did send those out, and of course it is worthless. The parent company went down and that was the end of the story.
