Why Buy A Blank Check Form 10 Shell Company
Whether you are a start-up enterprise or an operating company looking to raise capital or become quoted on the Over-The-Counter Marketplace, then purchasing an SEC reporting, blank check shell company may be one of the most beneficial options available to you. A blank check shell company can be the best financial mechanism to raise money for your company and provide both an exit strategy and liquidity to potential investors that want to invest in you, and your company, but have no clear path to profiting from their investment. Through the process of becoming a public company via a reverse merger or holding company structure (reverse triangularization) with an SEC reporting blank check shell, a business may become 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, blank check 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 seventy five million dollars per year (with audited financial statements) and subsequently by selling stock to accredited and unaccredited investors through a Direct Public Offering using general solicitation and mass communications via a crowdfunding intermediary.
Why Go Public with a Form 10 Blank Check?
Let us start by answering what a Form 10 blank check shell company (blank check company) is. A Form 10 blank check shell company, or virgin shell as they are sometimes referred to, are reporting to the SEC and they, generally speaking, have a class of stock registered under the Securities and Exchange Act of 1934. They traditionally have no cash, no debt, no business, and a minimal operating history. Their sole purpose is to identify and acquire an operating business through a merger, share exchange, or other transaction.
Through a reverse merger, or purchase of a “clean” blank check company, an operating company can go public, but without the burden of potential liabilities, and the long timeline normally associated with going public.
For more information on this process refer to our page: How to go public