
Posted by David Shaheen
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on December 22, 2008, 1:40 pm
68.110.242.121
I have seen a number of messages regarding the use of shells and reverse mergers for companies and transactions. Because of the 2008 SEC regulations, though, using shells can create big problems for the company (and its shareholders) and also costs MUCH more to accomplish than a direct filing with the SEC.
Our firm's fee to do an S-1 registration of your company with the SEC, register stock held by shareholders so that it is immediately free-trading, and get you up and trading on the OTCBB, is generally less than $50,000 for a U.S. company. Also, arrangements can be made for you to have independent discussions with a team of market makers, SEC accountants, transfer agents, EDGAR filing agents and investor relations and public relations firms with whom they have worked.
We will generally accept our fees in installments as well because we are fast. While there can be no guarantee, it has not been uncommon for us to have our clients SEC-approved within only a few months or sooner (in fact our group has received a number of very minor or "no response" reviews from the SEC - 13 days from filing to approval is our current record).
To learn more about the pros and cons of shells and how issues such as shareholder base are handled when filing direct with the SEC, take a look at my article in the Bizfin Legal Article Archive titled "Going Public by Direct Filing vs. Reverse Merger" at the following Bizfin link:
http://www.bizfin.com/legalcornerarticlearchive.htm
I look forward to your comments and questions.
David T. Shaheen, Esq.
dshaheen@burkreedy.com
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