Bulletin Board Shells

Bulletin Board Shells are currently the preferred venue for Companies desiring to go public through a reverse merger with a public shell. As opposed to Pink Sheet Companies that have almost no reporting requirements, Bulletin Board Companies are subject to the rules of the Exchange Act and must provide transparency in their operations.

The use of a Bulletin Board Shell in order to facilitate a reverse merger has many benefits.

• Because they are reporting public Companies, it is easier for merger Companies to discover outstanding liabilities, disputes with PCAOB auditors or pending lawsuits.
  
• Historical records are available to meet SEC requirements for the filing of a registration statement
  
• Bulletin Board Shells are far less susceptible to market manipulation.
  
• It is far more difficult for Bulletin Board Companies to conceal beneficial ownership of key shareholders and other potentially fraudulent and unethical activities.
  
• They are compliant with SEC Rule 15c2-11, making them piggyback qualified and ready to trade.

Bulletin Board Shells for Reverse Mergers
When a public company fails for whatever reason, it leaves behind a shareholder base and ultimately, a Bulletin Board Shell. The Company may have traded on the NASDAQ Small Cap Market or even the American Stock Exchange (AMEX) but upon no longer being able to meet its listing requirements falls off to the OTCBB or Bulletin Board or OTCBB market.

The operating business is gone, the shell company no longer possesses any assets and only the shareholder base remains. A merger candidate must be introduced in order to revive the Company. This void creates an ideal situation for a private Company desiring to go public by reverse merger with a public shell.