Sunday, October 09, 2011 6:31:04 AM
how to go public by means of a reverse merger using a public shell or OTC shell.
Getting Your Stock Trading -- FINRA, Form 211 and Market Makers
To get your stock trading, no matter how you became public, you have to get the stock quoted on the Pink Sheets, OTCBB markets or on a stock exchange. For small companies this means getting the stock trading on the Pink Sheets or OTCBB.
To have a trading market you need one or more market makers. This market maker must be a broker-dealer who is a member of FINRA and registered with the SEC.
To start trading, one market maker must file a Form 211 with the Financial Industry Regulatory Authority, FINRA, and make a market in your stock.
> a market maker should be willing to file a Form 211 if it believed that substanial business would develop in trading the stock. Market makers make money mainly on volume.
FINRA processes the Form 211 and requires that there be enough non-affiliated shareholders with free trading stock to make trading in the stock possible. They do not want this stock to be concentrated in a few hands.
You will have to prove that your company is not a shell as defined in Rule 144. You will have to show that you are in a bona fide business (Crossing Automation) with assets and at least be a development stage company.
You will have to produce a shareholder list from your transfer agent clearly showing free trading stock and an opinion of your securities lawyer that this stock is in fact free trading stock and not restricted.
If FINRA does not approve your Form 211, you have the right to appeal to the SEC. We would expect that any such appeal is likely to be unsuccessful.
Getting the right documentation, getting a proper list of shareholders, and selecting a market maker are important steps in the process
http://reverse-merger-shell.blogspot.com/2010/11/getting-your-stock-trading-finra-form.html
Getting Your Stock Trading -- FINRA, Form 211 and Market Makers
To get your stock trading, no matter how you became public, you have to get the stock quoted on the Pink Sheets, OTCBB markets or on a stock exchange. For small companies this means getting the stock trading on the Pink Sheets or OTCBB.
To have a trading market you need one or more market makers. This market maker must be a broker-dealer who is a member of FINRA and registered with the SEC.
To start trading, one market maker must file a Form 211 with the Financial Industry Regulatory Authority, FINRA, and make a market in your stock.
> a market maker should be willing to file a Form 211 if it believed that substanial business would develop in trading the stock. Market makers make money mainly on volume.
FINRA processes the Form 211 and requires that there be enough non-affiliated shareholders with free trading stock to make trading in the stock possible. They do not want this stock to be concentrated in a few hands.
You will have to prove that your company is not a shell as defined in Rule 144. You will have to show that you are in a bona fide business (Crossing Automation) with assets and at least be a development stage company.
You will have to produce a shareholder list from your transfer agent clearly showing free trading stock and an opinion of your securities lawyer that this stock is in fact free trading stock and not restricted.
If FINRA does not approve your Form 211, you have the right to appeal to the SEC. We would expect that any such appeal is likely to be unsuccessful.
Getting the right documentation, getting a proper list of shareholders, and selecting a market maker are important steps in the process
http://reverse-merger-shell.blogspot.com/2010/11/getting-your-stock-trading-finra-form.html
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