Read this about public shell mergers, sounds a lot like LAHO to me!
It is vitally important that a company and their legal counsel do a thorough due-diligence on the company, including a search for liens and judgments.
If the shell company does not have a symbol, an application for a symbol is usually made to the NASDAQ Bulletin Board. The application for a symbol requires filing a Form C211 by a market maker that is a member of the NASD. The Bulletin Board has no financial requirements. A listing will be granted if the affairs of the company are in order and the company answers the questions posed by NASDAQ.
If the public company is a fully reporting company and trading on the OTCBB, the private company must have audited financial statements. Consolidated financial statements must be filed with the SEC in four days after the merger is completed. Most principals of the public shell company will not even talk to a private company unless they have current audited financial statements.
If the shell company is considered to be “deal-driven” there may be many more requirements by the sellers. A deal-driven shell simply means that the sellers want to retain stock in the company after the merger is completed. Therefore, they are looking for a private company that has strong future potential. The management of the private company should have a strong management team, a good business plan and projections, a good marketing plan, and good SEC qualified attorneys and accountants on board.
Thinking this may have a reverse stock split and issue more shares. Then LAHO will go to the moon.
