Wolf Energy Services Inc (WOEN)

[Oxonius]

Yes. A defunct, but fully reporting (compliant) company has potential value for a private company that wants to go public (avoiding IPOs). They would have no interest in the business of the target company but would still have to assume any obligations or debts that exist. Essentially, they do a reverse merger (big, strong private company into small public company), change the ticker symbol and they're off to the races.

In our case, we would have to figure out what to do about existing assets and operations - generally, these transfer to the hands of management who may, or may not, pay cash for them (becoming a private company in the process); if no one wants them, they just dispose of everything at fire sale prices.

One assumes that all the stock issuing moves last year were for this purpose as you can't do a whole heap with 5/50 million outstanding. Of course it also gives an opportunity for management (and complicit board member) to continue to raid the till and line their pockets. As they can outvote everyone else they can do whatever they want, with equanimity. As I said, it's a sad (but predictable) story. I think it will end this year however.