NANT

[TrueTrades]

The ownership of shares by "random" people is important because of:

Liquidity:

By going public, a company creates a public market for its stock. In general, stock in a public company is much more liquid than stock in a private enterprise. Liquidity is created for the investors, institutions, founders, owners and venture capital professionals.

Investors of the company may be able to buy or sell the stock more readily upon completion of the public offering. This liquidity can elevate the value of the corporation. The stock's liquidity is contingent on a variety of factors including registration rights, lock-up restrictions and holding periods. A public company has greater opportunity to sell shares of stock to investors. Ownership of stock in a public company may help the company's principals to eliminate personal guarantees. Liquidity can also provide an investor or company owner an exit strategy, portfolio diversity and flexibility of asset allocation.
http://www.goingpublicnow.com/whypublic.html
http://gopublicpros.com/benefitsofgoingpublic.html

PIPE financing and reverse merger take place simultaneously. The seller achieves a deserved liquidity for the business while private placement investors gain an immediate ROI on their initial investment.
http://www.reversemergers.com/blog/crowdfunded-pipe-to-a-reverse-merger/

For venture investors, liquidity can only reasonable mean two things -- the company goes public and therefore has stock that can be publicly traded, or the company is acquired for some liquid asset (cash or stock). These potential liquidity events drive valuations throughout a startup company's financing cycle and, therefore, have a real impact upon the nature and frequency of venture investing.
http://hornik.typepad.com/vb/2003/06/public-markets-drive-private-investment.html

One of the chief arguments for the cost of a shell (dollars and dilution) is that there is a ready-made float of public non-affiliated shareholders, sometimes numbering in the hundreds, and that this is necessary for a healthy trading market. It is argued that institutional investors may pass on an investment with your company prior to going public if, afterwards, the shareholder float is neither large nor developed. Further, it is argued that a reverse merger results in an active and meaningful trading market commencing immediately following completion of the transaction and regulatory approvals.
http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uact=8&ved=0CDEQFjAA&url=http%3A%2F%2Fwww.burkreedy.com%2Fpublications%2FDavidTShaheen%2FGoing%2520Public%2520by%2520Direct%2520Filing%2520vs%2520Reverse%2520Merger.pdf&ei=FtlZVN6tG8-ryATX5IK4DA&usg=AFQjCNGxOxVvGZSFgqj44aqEOdqw2meSzw&sig2=wAmOu9Gt59eUS3O5uw4WuQ&bvm=bv.78677474,d.aWw

In a merger of this type the minority shareholders would likely retain 5-10% post-merger, not 20%.
Remember, friend, 99.9% of .000X stocks are heading for .0001 not .001! GLTA!
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