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Re: smallstockinvestor post# 117621

Wednesday, 02/08/2017 5:57:00 PM

Wednesday, February 08, 2017 5:57:00 PM

Post# of 224852
is it possible for a company to acquire such a shell company and begin trading after a reverse merger?

Yes. Shell peddlers exist for that very reason. They acquire dormant shells--sometimes through custodianship actions in local courts--and sell them. They claim they clean them up, but that isn't always true.

The SEC says it doesn't like dormant shells or shell peddlers, but recently it hasn't done much about either. It badly needs a way to stop these dormant companies from trading publicly as soon as their corporate charters are revoked in their states of domicile.
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