We have been receiving a number of emails requesting updates on our clients. We understand the excitement related to them. however, understand that we only take on clients that we can incubate and help them grow. This is a slow process as we go through completing audits and filing Form 10s to become a reporting entity to the SEC. We are not interested in any clients whose sole purpose is to engage in any sort of pump and dump mechanisms. We initially encouraged our clients to provide updates through press release prior to the Form 10’s becoming effective. However, as we have acquired more dormant trading companies we have begun having more in depth conversations with DTC, FINRA and SEC. During these discussions we have inquired specifically they are looking at when DTC chills a stock or SEC suspends trading. The main issue they are looking at are companies that see a spike in volume that issue press releases that are not supported by their SEC filings or companies who don’t file with the SEC at all.
A recent example from OTC Markets is the Caveat Emptor label being applied to the fully reporting entity ALKM. Additionally, we can list a vast number of Companies that have been suspended by the SEC or chilled by DTC. We see our jobs as helping our clients navigate the new regulatory field that is constantly changing. Based on this and our on-going discussions with DTC, FINRA and SEC we have begun to advise our current clients to maintain a quite period until about 1-2 weeks prior to their Form 10s becoming effective (which we expect to take 90-120 days from the date of the reverse merger). Additionally, we are advising our new clients that we will not be making any public announcement related to their reverse merger into one of our shells.
We started W+B Partners in May 2014 with the purpose of taking real private companies public as a way to provide capital for their growth and expansion. In hindsight we should not have announced our currents until their Form 10s went effective. That was a mistake on our part that we will correct. Going forward we won’t announce these transactions until after our client’s Form 10s go effective. This way expectations in the market will be set in accordance with the reality the companies are facing.
Sincerely,
Joseph Wade
