The IPO Board

[lesnshawn]

NantHealth, LLC will be going public probably this year. Last September, Forbes wrote...

All of these pieces–and dozens more that he’s bought or built–combine into a corporate structure as byzantine as his overarching product. His 800 employees are splintered across offices in 14 cities, and NantWorks, the parent holding company, houses nine separate units, all with different investor groups and each apparently designed to trade independently as a tracking stock. The first IPO, as early as next year, will likely be NantHealth, his health care information technology play, poised to profit from new payment schemes created by ObamaCare. Investors include Verizon, Celgene, BlackBerry and the Kuwait Investment Authority. FORBES values NantHealth alone at $1.6 billion. All told, FORBES values the entirety of Soon-Shiong’s Nant-related holdings at $7.7 billion.

What do folks here think?

Here's a little something on tracking stocks...

While a tracking stock may be spun off in an IPO, it's not the same as the IPO of a private company going public. This is because tracking stocks usually have no voting rights, and often there is no separate board of directors looking after the rights of the tracking stock. It's like you're a second-class shareholder! This doesn't mean that a tracking stock can't be a good investment. Just keep in mind that a tracking stock isn't a normal IPO.

Dr.SS owns a clean, empty shell stock company (KEYO) that after he bought control of it three years ago he liquidated it and closed its doors six months later. Then, over a year ago he finally, officially dissolved them.

Yet, it still trades even in lieu of the SEC's Operation Shell Expel

“Operation Shell-Expel continues to be an efficient way to combat microcap fraud by denying fraudsters the empty nests they need to hatch their schemes,” Andrew J. Ceresney, Director of the SEC Enforcement Division. “We are getting increasingly aggressive and adept at ridding the microcap marketplace of dormant shells within a year of the companies becoming inactive.”

Again, Dr.SS's empty shell which he could use to reverse merge NantWorks, LLC into public existence when then he could issue his first IPO tracking stock, NantHealth, LLC later this year.

What do folks here think?

What kind of IPO will it be for NantHealth, LLC?

If a traditional IPO and he plans on taking it public this year, it's July already, shouldn't we have seen some official SEC filing by now?

And, if a traditional IPO, taking LLC's public that way is so so exceedingly difficult NantHealth "would be required to first convert to a corporation anyway with potentially very adverse tax consequences."

But, if he were to reverse triangular merge NantWorks, LLC into his empty shell KEYO (Keyon Communications Holdings, Inc.) through it's subsidiary, Keyon Communications, Inc.(NV), it could be 100% tax free.

What do you all think here? Feel free to join the discussion over at the KEYO board. I can't, I've been banned there.

Would love to read some fresh opinions on it. Please share your thoughts.

lns