FormCap Corp (FRMC)

[Phatlander]

Possibly what may be in play here is a Custodianship play? From nosing around a little bit, apparently Richard Tang acquires a shell in this manner, cleans them up, and sells them for a reverse merger.

FYI-What is a Custodianship?

There are literally thousands of penny stocks that are publicly traded. It isn’t uncommon for some of those stocks to get abandoned by their control people for a variety of different reasons. When a publicly traded company gets abandoned it doesn’t just stop publicly trading. The abandoned shell will continue to trade until the day that the SEC files an administrative order to revoke the Issuers registration (for SEC filers) or until FINRA deletes the symbol (for non-SEC filers). That can often mean years of trading as nothing but a zombie ticker.
As abandoned shells, the public Issuers will fall behind with their business license at the state level (since nobody is around to pay the annual fees due to the Secretary of State). When two years pass without an entity paying its business taxes at the state level, the entity becomes revoked. This opens the door for control of the public Issuer to be taken over by an interested party (a shareholder or debt holder for example) through a custodianship petition.


https://otcmarketresearch.com/understanding-custodianship-plays/