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How to Value a Reverse Merger Shell -- www.reverse-merger.info

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Uploaded by on Jan 22, 2012

http://www.reverse-merger.info
Describes the basic factors that give rise to value in an OTC shell you are using to go public with a reverse merger.

Where the shell is traded affects its value. Grey Market shells have little or no value. Grey Market stocks have no market maker. Getting these stocks trading with a market maker may be very difficult or impossible

In the Pinksheets -- be careful. Many Pink Sheet stocks have bad records, cannot be audited and filed with the SEC. Information is not certain

On the OTC BB, the company must file with SEC, but this is no guarantee of accuracy.
The more shareholders the OTC shell has, the better. It gives you a pool of interested investors and should lead to more volume. Be sure to check the shareholder list for bad actors. Verify the amount of shares outstanding with the transfer agent.

The more trading volume, the better. It shows you have interested investors already there. It gives your new investors liquidity if they want to sell.

Is the stock DTC eligible? Is it in compliance, especailly with previous stock sales. What is the public shell's reputation. Does it have "bashers?" If is it Caveat Emptor on Pink Sheets, beware!

Too many other factors apply, too many to list here. You need an experienced professional to help you value the public shell. Look at the assets and liabilities, the state of the OTC shell's records. Some like the shell to be in the same industry as the company to be acquired.

As we have seen, a shell has value when it is clean and when it can provide liquidity for your new investors, so you can raise new money

Go to my website www. Reverse-merger. Info, my blog: Reverse-merger-shell.blogspot.com, get my new book "Reverse Merger: a Readable Guide for CEOs and CFOs" on Amazon. Contact me at Lux.investor@ gmail.com

More information at http://www.reverse-merger.info

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