Traack Technologies Inc (TRAA)

[Zenrush]

Where Do OTCQB, OTCQX and OTCBB Shells Come From?
OTCQB, OTCQX and OTCBB Shells generally derive from a failed public company business. A company may have traded on the bullet board when operating and subsequently suffered a failure of the operating business leaving behind a shell. When this occurs, these companies may no longer be able to meet the listing requirements of their respective exchanges such as trading price or market capitalization. The Company then “falls off” to the OTCQB, OTCQX or OTCBB over the counter market. When the operating business ceases entirely it leaves behind a shell Company.
The OTCQB, OTCQX and OTCBB Shell Company has no operations and no or nominal assets and liabilities, but the shareholders remain. In the process of an operating business failing and leaving behind a OTCQB, OTCQX or OTCBB Shell, many issues must be addressed in order to ensure that the successor business or merger candidate does not end up assuming the liabilities and responsibilities of the former operating business. In most cases these issues can be rectified. For example, prior liabilities may be written off if the statute of limitations has passed, or the debt may be settled.
The process of diagnosing potential issues with a OTCQB, OTCQX and OTCBB Shell is known as Due Diligence.