Replies to post #2164 on Genco Corp (GNCC)

[Type0neg]

I hear you..but im unable to find a cached version of the shell sale site. Only copy and paste.

Oxford Corporation at $175,000

Symbol: GNCC
SEC Status: Voluntary Filer
State of incorporation: Nevada/Delaware
Year of Incorporation: 1985
Purpose of Corporation: Merger Vehicle
Number of Shares Authorized: 200,000,000
Number of Shares Issued: 30,200,000
Number of Free Trading Shares: 30,200,000
SIC Industry Classification: 7999
Common CUSIP: 36867M107
Preferred CUSIP: N/A
Is Stock Currently Trading: Yes
Fiscal Year End: 12/31
Regulatory Filings: Voluntary
Company Status: Development Stage
State and Federal Tax Returns: Current
Pending Litigation: None
Transfer Agent: Securities Transfer Corporation
Auditor: To be appointed

Oxfords Unique Audit Exemption

You can merge your company into Oxford and begin selling your stock without an audit. This is possible because in 1998 the SEC changed its regulations and required companies seeking to go public to provide certified audits in advance. Oxford is exempt from this regulation because Oxford went public and began trading its shares well before the SEC rule went into effect.
Public shells like Oxford are highly sought after primarily because of their audit exemption. Oxford's audit exemption gives a substantial advantage to a private company merging with Oxford. Without Oxfords exemption, a private company would be required to provide certified audits from its inception, or three years, whichever is greater. Without the Oxford exemption, an incoming private company would need to file a full disclosure statement equal to that contained in an IPO. And, officers, directors, directors, and affiliates would not be allowed to keep the profits on their stock for the first nine months following the reverse merger. Oxford Corporation gives a private company a minimum head start of three months in raising money. The money raised during this headstart should cover the shell cost and other expenses of going public. Allowing officers, directors, and affiliates to keep their stock profits is a big inducement for them to invest in reverse merger stock.

Blind Spot and Auditor Signoff Risks

All public shells, except virgin shells, have Blind Spots. A Blind Spot is the period of time when a failing public company is attempting survive. One of the most common actions by failing public companies are the granting of large stock options to key employees to induce them to remain with the failing company.

Example; A failing company issues securities. The securities issued are valid and must be honored by the future buyer of the shell. The share prices of a failing companies are often pennies per share. A failing company grants a 7 year stock option to its sales manager for 300,000 shares at $.05 per share when the market price is $.10.

The failed public company is cleaned up and used to complete a Reverse Merger. The due diligence of the public shell did not identify the 300,000 stock option. Two years after the Reverse Merger closes, the public company receives a letter advising them that the former sales manager is exercising his 300,000 stock option. The letter includes a check for $15,000 (300,000 shares @ $.05) along with instructions on where to send the stock certificate. If the public company stock trades at $5 per share, the 300,000 shares are worth $1,500,000.

Auditor Signoff Risk

You are presented a certified financial statement. The statement tells you what the assets and liabilities are. It also tells you how much money the company makes or looses. The audit is signed by someone you don't know and have never heard of. If the audit was through, it will also include a set of documents beginning with the incorporation of the audited company and concluding with a Certificate of Good Standing. So here is the question. Do you believe the audit? Are you willing to rely on its accuracy? Was the auditor dupped? Were documents withheld from the auditor? Were the books and records maintained throughout the company failure? The answer is for shell buyers to stay away from shells that had an outright failure. Better to look for shells that wound down their operations, settled or paid their creditors and fully maintained their books and records throughout their operations. These shells are hard to find and cost a little more but a well worth it.