Bridgetech Holdings International (BGTHQ)

[marketmaker33]

What is the Sarbanes-Oxley Act and What Effect Does It Have on Reverse Mergers.

Additional burdens of the Act on Reverse Mergers include that 8-Ks now require the acquiring company to file an audited financial statement for the fiscal year before the reverse merger and pro-formas for the combined business. However, if the acquiring company has been in existence for less then a year, the audited financial statements have to only cover the period since formation. So, it is possible to form a new corporation, solely for the purpose of acquiring the public shell, but you can not sign the closing documents until a complete audit is done of the new company. This means the deal cannot close until these, and all documents required to be filed with the 8-K, are complete and available