Check out MIMS and LGBS filings for affiliated parties.
Just a theory but I believe they were shells created for a similar purpose as the pink sheet shells they used. I guess they figured they could do the same with larger companies by using more attractive OTCBB shells.
I believe a lot of these issues stem from the new 144/145 Rules, specifically Rule 144(i). This was pretty much the death blow for the Minnesota and Texas 504 loop hole. It pretty much made a good majority of pinksheet and greysheet companies worthless for merger. Under the Rule changes a company that had ever been reporting, or considered a shell, must register with the SEC in order to use Rule 144. The rule changes were retroactive and did not allow any grandfather provisions.
It basically made pinksheet/greysheet stock illiquid and no ability to use Rule 144, under the provision of Regulation D, to remove the restrictive legend.
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