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Re: None

Saturday, 10/25/2014 5:08:45 PM

Saturday, October 25, 2014 5:08:45 PM

Post# of 10055
There are generally three types of Reverse Mergers with OTC Shell Companies. From least desirable to most from the standpoint of the shell investor:
1) A Shell Company with large (>1B) OS and a Private Company with little to no Assets.
This includes the majority of OTC shell stock/RM plays and all those focused on in the SEC's Operation Shell Expell
Almost ALWAYS includes a Reverse-Split of the Common Shares to reduce Stockholders Of Record and Common Shareholders and often a Post-Merger Forward-Split of the Authorized Shares to further dilute the Shell Holders.
Pure-Play opportunities that require the exit of position at a precise time.
2) A Shell Company with large (>1B) OS and a Private Company with growing Assets.
This is the type of RM that 1) above tries to imply, but usually is not. These are normally legitimate RMs for the typical RM advantages.
Almost ALWAYS includes a Reverse-Split of the Common Shares to reduce Stockholders Of Record and Common Shareholders. Requires a time commitment from the Shell Investor.
Long opportunities that can pay huge returns after the holding period.
3) A "Clean" Shell Company with a small (<250M) OS and a Private Company with substantial Assets (>$100M).
These types of RMs are almost never seen on the OTC and seldom on Exchanges.
Classified as Once-In-A-Lifetime opportunities, these rarities are an enigma.
Instant Millionaire opportunities that offer enormous Short-Term gains while establishing Legacy Investment Portfolios.
And then there's...
4) KEYO
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