Shell Stocks & Reverse Mergers

[lesnshawn]

wilma: He kept the stock. That is clearly evident. No indication otherwise. You have any proof he sold his stock?

A few FACTS to bear in mind...

The State of DE allows THREE YEARS for company to completely dissolve. A complete dissolution involved a complete liquidation of ALL the company's assets which includes its publicly traded shares, if any. The shares traded hence the dissolution wasn't "complete".

An IRS form 966 is filled out where an indication of complete or partial liquidation is asked. Wouldn't we love to see how that form was filled out for KEYO.

It's not a termination and elimination of the KEYO ticker and stock. It's merely a 10-day suspension while FINRA investigates why the lack of information on the dissolution.

Stick w/ me here, wilma, and finish reading this post...

Here's my guess...

The SEC did their job. They already got their answer at least a year or two ago from Dr.SS and/or TW on the plans for KEYO, hence it never stopped trading because for at least a year or two it fit your (and Popt's and incidentally, the SEC's if you want to go that far) definition of a dormant "shell company".

Again, it wasn't a 'compete' liquidation, but a 'partial' one. I wish we could get a copy of this that TW must've filled out (note Item #3): http://www.irs.gov/pub/irs-pdf/f966.pdf

Hence, why FINRA never stepped in to intervene in KEYO trading after they initially dissolved because they were already given word from the SEC that KEYO's shell owners were contacted during a sweep of their dragnet "Operation Shell Expel" a couple years ago and were told they had a plan for it.

But, now a year or two later and starting two weeks ago, they get calls from "concerned citizens" (from iHub) that investors may be getting fleeced by unsuspectingly buying shares of a 'completely' dissolved company. Being a year or two later and w/ no readily accessible, clear paper trail being available to the first line "responders" to be able to quickly determine exactly why KEYO shares were still trading at the time those 'calls for action' started coming in two weeks ago, FINRA does the "right thing" per these current citizens' concerns and enforces the federal security law of temporarily suspending trading for 10 days while they investigate the reasoning for the "lack of publicly available, relevant and current financial information."

Read Read FAQ #3:

3. When must an issuer notify FINRA of a filing of dissolution with the state?
If the dissolution involves no distribution or cancellation of shares, we require notification upon filing with the state. If there is a distribution or cancellation of shares, we require 10 days notification prior to the record date or cancellation date of shares as required by SEA Rule 10-17.

This story is far from over as your wrongly suggest.

My further guess is you'll learn in the near future to not be so quick to be so smug in claiming a shallow, petty "victory" while rejoicing over the anticipated loss of others.

lns