Why Buy A Blank Check Form 10 Shell Company
If you are a start-up enterprise or an operating company looking to raise capital or become publicly traded on the OTCBB or on the Over-The-Counter Marketplace, then purchasing a clean and SEC reporting Form 10 blank check shell company may be one of the most beneficial options available to you. A shell company like ours can be the best financial mechanism to raise money for your company and provide both an exit strategy and liquidity to your investors that want to invest in you and your company but have no clear path to getting their money back. Through the process of becoming a public company via a reverse merger or holding company structure (reverse triangularization) with one of our SEC reporting shells, a business becomes a more attractive investment opportunity to a wider range of investors. The supply of equity capital is more abundant for public companies than for private ones.
Additionally, Form 10 shell companies qualify as Emerging Growth Companies defined under the JOBS ACT, thus granting a private company which merges into a blank check company with the ability to raise up to one million dollars per year (with audited financial statements) by selling stock to accredited and unaccredited investors through a Direct Public Offering using general solicitation and mass communications via a crowdfunding intermediary that will sell your shares of company stock and collect your money. We will be able to provide you with an SEC reporting shell, help you prepare a Private Placement Memorandum (PPM) necessary for your crowdfunding offering, and help you create a corporate video to use on a crowdfunding platform.
Why Go Public with a Form 10 Shell?
Let me start by answering what a Form 10 Shell Company (blank check company) is. A Form 10 Shell Company, or virgin shell as they are sometime referred to, are reporting to the SEC and they have a class of stock registered under the Securities and Exchange Act of 1934, but do not trade on any stock exchange. They do not have any individual securities registered pursuant to the Exchange Act of 1933. They traditionally have no cash, no debt, no business, and a nominal number of shareholders. Their sole purpose is to identify and acquire an operating business through a merger, share exchange, or other transaction.
The price of other types of existing shells such as Over the Counter Bulletin Board, "OTCBB" or legacy shells, carry with them significant risks and a huge price tag. Most of these shells have an existing shareholder base (not clean shells), still have large amounts of debt, do not qualify for the benefits of the JOBS Act, and cost an average between $200,000-$600,000 USD. If you were to go this route with your company the price of an IPO would be even more money and you would need underwriters waiting in the wings to take you public. The fact is that it is not feasible for any small businesses to go public through an IPO.
Through a reverse merger or purchase of a Form 10 Shell, your company can go public, but without the burden of potential liabilities, and also at a mere fraction of what it would costs via a trading shell company. For more information on this process refer to our page: How to go public