Coastal Capital Acquisition Corp (CCAJ)

[SW Investor]

I understand but in my experience shells are worth no more than $250K with, at most, 5% of the post merger equity going to the legacy shareholders. My partner and I have led more than 75 conventional public offerings, including more than 45 conventional IPOs and are always looking around IH for available shells to use as shortcut IPO's. We would never consider a shell with a market cap of more than $250K (because that represents dilution to the operating business) and to us, there is no difference between pinks and BB. When I look at possible candidates, I attempt to back into the true market cap, which is sometimes difficult to determine because the people controlling these things often issue themselves ridiculous numbers of shares because no one is really watching. We always structure the capitalization, post merger, to achieve a trading price north of $1.00 as our goal is to position the merged company for a listing on the AMEX. Anyway, this is how I would look at these shells.