Houmu Holdings Ltd (HOMU)

[Ed from PR]

Lazar: NOT ALL PINK SHEET SHELLS ARE THE SAME.
To the untrained eye all OTCMarkets “Shell” companies look the same. Each might have the following Characteristics: Ticker Symbol, Shareholders, Market Makers, Transfer Agent, DTC Eligibility etc., but there is much more “under the hood” that needs to be looked into.

It is very easy to see advertisements on-line showing Pink Sheet companies selling for as cheap as $50,000. Many cheap Pink Sheet companies or “Stinky Pinkys”, as they are sometimes referred to, will simply never get past Finra approval for corporate actions such as a Name Change or Reverse Stock Split – virtually making these companies worthless.

Listed below are some of the issues that Finra looks for when considering a corporate action:

1. The company is a 34’ Act filer and has “Dark Period’s” in its’ filing history. (A Form 10 filing with the SEC could possibly remedy this issue).

2. Bad Actors – one of the shareholders in the Pink Sheet company holding greater than 5% or 10% has had trouble with the law.

3. Inconsistencies in the company Corporate History (i.e.) a name change or the number of Shares Authorized are not accurate or were filed improperly, or simply not filed at all.

You need to really know what you are doing in order to understand the differences between a “Stinky Pinky” and a Clean Pink Sheet Shell, which can ultimately be used to uplist a company to the OTC:QB or later on Nasdaq or NYSE. Having an experienced Securities Attorney by your side is key to making these crucial decisions.

As the saying goes, “What starts off being cheap, ends up being expensive”.
https://www.linkedin.com/pulse/all-pink-sheet-shells-same-david-lazar?articleId=6710921350086701056