The Truth about Public Shells and Reverse Mergers

You do not need a public shell to go public. However, if you are in a consulting capacity, for example, or an attorney that advises private companies, you may benefit from having a public shell company. We can form a new shell company for you.

If in the future you find a company that would like to go public quickly, you will have the ability to assist your client in doing so. This type of shell is ideal for companies you may identify in the future that would benefit from being a public entity.

Blank Check Company Compared To Trading Public Shells

There are 2 kinds of public shells. There is a big difference between them. One can help speed up the process to become a public. These are called virgin or blank check companies. A Securities and Exchange Commission reporting blank check company is a public shell. They have no operating history and are formed to become SEC reporting public companies to find and merge with a private company. Many investment banks and consultants use this type of public shell company to merge a client into since some funding sources require a company to be public before they can invest.

The type you want to avoid is the old trading public shells that had a previous operating business in them. A reverse merger with a public shell can be expensive if you use a trading shell with a symbol. The public shells that are blank check companies are much more affordable and preferred by the investment community.

The type of public shells preferred by the investment community are Securities and Exchange Commission reporting blank check companies These SEC reporting public companies can be helpful in that they can help you become a public company practically immediately. These types of public shells are well regarded because they were formed only to find a private company to merge with. They never had an operating business in it. They are often used by investment funds.

We assist companies in going public on the NASDAQ, NYSE, AMEX as well as the OTCBB. If you want to go public you can begin trading over the counter on either the Over the Counter Bulletin Board or the Pink OTC Markets. For example, to start trading on the Pink Sheets is very fast. A company can always move up to the FINRA OTC Bulletin Board or NASDAQ later. Some companies choose to start out on the Pink Sheets and later move up to NASDAQ or the NASD Financial Industry Regulatory Authority OTC Bulletin Board.

A company can also elect to begin trading on the FINRA OTCBB from the outset. If you have identified a public shell and you want us to do the due diligence please contact us. When dealing with reverse mergers and public shells it is always recommended you have a very experienced securities attorney assist you. Franklin are experienced team. We can take your company public directly.