Biochem. Katx Cusip Number - Not sure if you have this but read: JV GOLD Property
KAT EXPLORATION, INC. DATED: April 19, 2010 CUSIP NUMBER: 48238M104 The Company intends to drill at least one gold property in a joint venture pending the availability of additional financing.
3 days after this: Bella Viaggio, Inc. entered into a Securities Purchase Agreement dated as of April 16, 2010 with Kenneth Stead (PURCHASER) and Ronald A. Davis and Ronald G. Brigham (PRINCIPAL SELLERS),
- SO QUESTION IS WHY ARE THE SELLERS SWITCHED NOW AS OF JUNE 4TH 8K----
Management’s Discussion and Analysis or Plan of Operation Plan of Operation Over the next twelve months, the Company expects to maintain all of its six mineral properties and possibly acquire one additional gold property. The Company intends to drill at least one gold property in a joint venture pending the availability of additional financing. The Company’s current budgeted cash requirements of $650,000 will allow it to maintain its existing mineral properties and to drill on the gold property. With the Company’s on-going financing campaign, it is anticipated that the Company can increase its budget requirements and continue to acquire attractive mineral properties. The Company will continue to employ its current 5 employees along with engaging the services of a geologist on the monthly contract beginning in the second quarter of 2010.
Frequently Asked Questions Can any company go public? Yes, virtually any company can go public with their own trading symbol on the OTC Bulletin Board or Pink Sheets.
Does the SEC care that my company is a start-up or development stage company? No. They only care that everything is filed correctly and that all disclosures are made.
Does the SEC care that your company does not have the funds to implement your business plan? No. The SEC doesn’t care about your financial ability to implement your business plan as long as it’s fully and accurately disclosed and you actually intend to implement the business plan described in your filing.
Does the SEC care you or the other officers or directors has had a personal or business bankruptcy? No. But it must be disclosed.
Does it matter how large your auditing firm is? No. the SEC only cares that your auditor is registered as a PCAOB auditor.
How long does it take to go public direct on OTC Bulletin Board or Pink Sheets? It typically takes about 6 to 8 months to become a trading company on the OTC Bulletin Board or Pink Sheets by direct filings, start to finish. Much of this depends on the speed in which you answer questions and provide information when requested.
How is the initial price of the stock determined? The initial stock price is determined by the market maker with approval of FINRA. The initial price is based on several factors including the price of the last public offering, assets, and other considerations. The initial price is largely irrelevant, as the first orders in the system will set the price of the stock. In other words, the initial quote price of a stock typically has a very large spread, or difference between the bid and offer price. For example, it may be 2 cents bid by 50 cents offer/ask. But once buy and sell orders enter the system, the quote will reflect those orders.
How long does it take to do a reverse merger into a public shell company? It typically takes only a few weeks to complete a reverse merger into a public OTCBB or Pink Sheet shell company and begin trading.
Will you be successful in taking us public? The short answer is, YES! The SEC reviews registration statement but does not make any subjective on the merits of your filing. They review to assure that all of the information required by the rules and regulations is included. The SEC does not block registration statements. As long as the control persons of your company don’t have issues that you have not disclosed to us, and as long as you are cooperating with us and responding to our information requests during the process, you will become publicly traded. If you do have issues, like felonies or past issues with regulators, if you disclose it, we can let you know if we think we can get you public ahead of time.
Can you list a foreign corporation directly on the OTCBB? Yes, the filing is different for a foreign corporation that wishes to go public direct on the OTCBB or Pink Sheets and the cost is a bit more. Instead of an S-1 registration, we would file a F-1 registration statement, which is a completely different document, with more SEC review than the S-1.
Do you raise money for me when you take us public? No, we take companies public by self-filings and reverse mergers. No money is raised as an actual part of those processes. Although many times a reverse merger will be accompanied by a contingent simultaneous funding. That said, we do have many real contacts that can raise money, so long as your company meets certain criteria. And yes, we have successfully found funding for our clients.
What is an Accredited Investor? If an individual, the individual's annual income during each of the prior two (2) years must have exceeded $200,000 (in each case including foreign income, tax exempt income and full amount of capital gains and losses but excluding any income of other family members and any unrealized capital appreciation) and would need to be reasonably expected that their individual annual income during the current year would also exceed $200,000. -or- If an individual, the individual's joint (with spouse) annual income during each of the prior two (2) years must have exceeded $300,000 and ould need to be reasonably expected that their individual annual income during the current year would also exceed $300,000. -or- If an individual, the individual's or joint net worth must exceed $1,000,000. (Explanation: In calculating net worth you may include equity in personal property and real estate, including your principal residence, cash, short term investments, stock and securities. Equity in personal property and real estate should be based on the fair market value of such property less debt secured by such property.)
Who pays for the company’s audited financials? You pay for your own audit. We can recommend experienced auditors if you need one.
How much does the financial audit cost? An audit can cost anywhere from $5,000 for a brand new corporation to $100,000 or more for an extremely complicated company audit.
What is the difference between the Pink Sheets and the OTC Bulletin Board (OTCBB)? The Pink Sheets and the OTC Bulleting Board are competing quotation services for OTC securities. The Pink Sheets is a privately owned company, while NASDAQ operates the OTCBB. Unlike the OTCBB, issuers do not have to be fully reporting companies with the Securities and Exchange Commission (SEC) to be quoted on the Pink Sheets. Because of this greater transparency, it is widely accepted as fact that the OTCBB is a better trading market than the Pink Sheets. Thus, we highly recommend that you go public on the OTCBB.
What is a CUSIP number and does my company require one? CUSIP stands for Committee on Uniform Securities Identification Procedures. A CUSIP number is a nine digit number issued by Standard & Poors in the United States and CDS in Canada. A CUSIP number uniquely identifies the issuer and the security and is used by the financial community as an identifier for their computer systems. A CUSIP number is a requirement for eligibility for the booked based system in the United States.
What is an ISIN number and does my company require one? ISIN stands for International Securities Identification Number. An ISIN is a 12-character alpha-numerical code which does not characterize financial instruments but serves as a uniform identifier for security trades and settlements. The Canadian Depository for Securities (CDS) has adopted the ISIN as its standard identifier for security trade and settlement in Canada.
What difference does it make if a public shell company is a 1933 Act company or 1934 Act company? 1934 Act companies are subject to proxy rules in order to provide the quote. You can tell the difference in public shells by the file number of the public company. The file number for 1933 companies contains the numbers '333' whereas for 1934 companies, the file number is '0'
What does 'piggyback qualified' mean? When describing a public shell company, a "piggyback qualified" security is one that meets the frequency-of-quotation requirement described in SEC Rule 15c2-11(f)(3). The frequency-of-quotation test or "piggyback" exception is based on whether a broker/dealer has itself published quotations in the security in the applicable inter-dealer quotation system on at least 12 business days during the preceding 30 calendar days, with not more than four consecutive business days without quotations. Once this criteria has been satisfied, authorized participants may register on-line in a security. As long as the security remains piggyback qualified, any participant may quote the security without a Form 211 submission
What are “Footnote 32 Shells”? Footnote 32 is part of the SEC rule-making passed in June, 2005. The rule provided a clear definition of a ‘shell company’, defining it as a shell company as one with no or nominal operations and/or nominal assets (other than cash). Opponents of Footnote 32 shells claim that they are merely business plans created for the sole purpose of selling the shell after it gains trading status. They believe there are only 2 legitimate ways to create a public shell, 1) through Rule 419 (the old “blank check” company rules which require SEC approval at the time of creation and the time of the private company acquisition), or 2) filing a Form 10-SB to create a reporting company whose business plan is to acquire an operating business. The problem is that shells manufactured in both these ‘legal’ manners cannot obtain a trading symbol before the reverse merger (except for the SPAC, which raise a substantial amount of money and are allowed to trade so long as the price is $5.00 or greater). The problem they have with is that it puts honest shell sponsors who follow the law of Rule 419 and 10-SB at a big disadvantage because such shells do not have a ticker symbol and do not trade yet. Public shells that are already trading command a big price premium over non trading shells because they are already trading and have a ticker symbol so the buyer saves a substantial amount of time and expense by avoiding the filing of a registration statement. Some opponents to Footnote 32 shells believe that the SEC is scrutinizing these types of shells. This is simply not true. There is simply no way the SEC can determine the original intent of the public shell registrant? Moreover, the job of the SEC is to review the registration statement for accuracy and proper disclosure, not to police the intent. That said, a phony business plan Footnote 32 Shell is not a good thing. Although Footnote 32 shells have free trading stock because they was created through a filing with the SEC under the 1933 “Selling Stock” Act, the company's business plan was phony, meaning the company didn't really intend to enter in to the business as claimed. In this case, the filing is a deception to get around the law and inappropriately and illegally create a trading shell. The SEC has said in Footnote 32 to a 2005 Release concerning shell companies that it is illegal to create a shell this way.
What is a “Form 10 Shell”? Form 10 Shells, sometimes referred to as “Virgin Shells”, are shells that do not trade. Form 10 shells also have no free trading stock because they have no stock registered under the 1933 “Selling Stockholder” Act.
What is a “SPAC” (Special Purpose Acquisition Companies)? Theoretically, the SEC does not allow ‘manufactured’ Public Shells to trade under Rule 419. However, if the public shell has over $5,000,000 in net assets and a stock price of $5.00 or greater, it can trade under the Penny Stock Rules. These shells are great if you can raise $5,000,000.
What does DTC Eligible mean? DTC stands for Depository Trust & Clearing Corporation. Stocks held by DTC are kept in the name of its partnership nominee (Cede & Co.). Not all securities are eligible to be settled through DTC ("DTC-eligible"). First a little history: DTC eligibility used to be almost automatic after a company cleared its registration statement and its 15c2-11. One of the company shareholders would deposit their shares with their broker, who would apply for DTC-eligibility through a clearing firm affiliated with DTC. Once done, the stock could then be bought and sold electronically through brokers or online. Recently, this ‘automatic’ DTC eligibility approval by DTC is no longer occurring for many smaller companies going public. Some are having trouble even finding a broker or clearing firm even willing to submit the DTC-eligibility application. The cause of the change is easy to pinpoint, but as usual, the reaction by DTC, clearing firms, and brokerages is not so easy to understand. In Jan 2009, FINRA issued a notice to its broker-dealer members reminding the of their responsibility to insure federal securities laws and FINRA rules are complied with when they are participating in the sales of unregistered securities. Since these brokerage firms were charged with investigating the stock issuances of issuers to make certain there were no unregistered distributions, smaller companies were immediately hit the hardest, because they have the shortest operating histories and are more likely to trigger red flags with FINRA. The end result is that it has left many companies, and even attorneys, at a loss as to how to become DTC-eligible. The problem is that many shareholders of these non-eligible companies cannot deposit or trade their shares. Obviously, this is a huge problem. We have also heard that name changes or stock splits or other things that cause companies to obtain a new CUSIP would also cause the company to be required to re-apply for DTC eligibility. In a nutshell, a company needs to be 'real' and not a 'shell' in order to become DTC eligible.
What is a “Blank Check Company”? A blank check company is a development stage company with no specific business plan or purpose or one that has indicated its business plan is to engage in a merger or acquisition with an unidentified company or companies. Even though this company is created through a filing with the SEC under the 1933 “Selling Stock” Act, the SEC’s Rule 419 specifically provides that, even though registered, stock in this kind of a shell cannot trade so long as the company is a shell company. These shells are no good.
How do I complete a reverse merger? Our securities attorneys can provide everything needed to complete the merger including but not limited to due diligence, restructuring, share purchase agreements and name and symbol changes.
