Grey Sheet Public Shells
A Grey Sheet is a non-reporting entity and is sought out by companies who are interested in going public in the sense that they have a symbol, transfer agent and shareholder base, but do not have the immediate need for high liquidity and high trading volume of their stock. It is a sound vehicle for companies in need of capital in the amount of $1 million or less and can be ideal for conducting Rule 504 registered public offerings; Rule 504 accredited investor offerings and similar exempt intra-state offerings.
Grey Sheet Shells and their relevant offerings are generally for young or start-up companies that do not want to actively trade their stock and attract attention from the street until they have completed acquisitions; generated increased revenues or completed other short-term (less than five years) plans, but still desire the benefits of being a publicly traded company.
Grey Sheets can evolve into Pink Sheet Shells or Bulletin Board Shells by filing a Form 10 or similar registrations statement as well as a 15c2-11 application to be quoted on the bulletin board, and may even bypass the application to be quoted on the pink sheets.
Grey Sheets public shells can range in price from $100,000 to $125,000.
