Namliong SkyCosmos Inc (NLSC)

[WinningNoMatterWhat]

Why is it a good shell…

-low float <2% of outstanding
-operational losses carried forward
-sec reporting
-attractive OS under 20M shares
-no convertible note holders


The low float greatly reduces the risk of a future reverse split. Many investors favor low floats because they run very hard when they do. The relatively low number of outstanding shares let’s even a relatively small company qualify for Nasdaq without a reverse split.

Again, lots of things are in place that lower the risk of future significant losses of ownership.

For a current clean shell, a $10M cap is usually easily for an existing business to support. You need an existing business to really take advantage of tax losses. That makes the long term outlook of at least breaking even if it’s a bad merger that much better at this price. It’s all risk evaluation. This one had good signs.

The immediate outlook makes it seem like Hsu controls the shell solely via OEC and for some reason SkyCosmos leadership backed out.

The last Q indicated Hsu was trying to facilitate another merger. He gave no promises or time frame. It’s not dead, just now waiting for another deal.

Mergers usually don’t fall apart this late in the process. So it was a big surprise.

I started reading why a company would do that and how the market direction plays into it….

https://www.wsj.com/amp/articles/the-spac-ship-is-sinking-investors-want-their-money-back-11642761012

Good article on SPAC’s, but the market incentives for a company to go public are still similar and apply here, imo.