DD means looking into the specifics of the reverse merger.
Why is the name change taking so long....Verde is having a problem providing the required information.
They need to work on becoming a fully reporting company...this cost $$$ or we go on as HMIT....but this is only one of all the problems facing any Pink sheet stock.
QUESTION THREE: After the merger, I may want to:
Move up to the OTCBB
Change the Company’s Name
Reverse Split the stock.
Can I do that?
The answer is: Yes, but only if you have all of the following information:
A full corporate history for the shell including all material facts of the corporate action being requested (Start on the original date of incorporation and include all the corporate changes that have occurred until present day, including, but not limited to, changes of control, reverse mergers, name changes, etc).
Back to the formation of the shell: A list of all corporate officers prior to the current officers appointments. This list should include the date of appointment and resignation for each officer on this list and should be accompanied by the executed back up documentation (i.e. signed resignation letters, Board of Directors resolutions with officer appointments included, etc.)
Back to the formation of the shell: Provide a regression diagram, from the shareholder list provided, that traces the shares from the current shareholder to their issuance by the shell. This list should indicate the name and address of the shareholder or transferor, the date of original issuance or transfer, the provision under the Federal Securities Laws or exemption that the Issuer relied upon, and the consideration paid to the issuer or transferor. Additionally, provide a detailed explanation of the Shell’s nature of business at the time of original share issuance and each subsequent issuance of shares since inception.
Back to the formation of the shell: Details surrounding the shell’s offering(s). Your answer should include, but not be limited to, who solicited investors, how the solicitor knew them, and how many individuals were solicited including those that did not purchase.
If you do not get this information from the shell promoter at closing, or if it is not available, you are screwed if you want to do any of the corporate actions listed above. That means:
No move to the OTCBB
No name change
No reverse split
It is far less expensive to HYPE a stock.
Only after the deal is done does it become apparent the problems you have encountered.
