A very prudent move in my view. He’s making sure that there’s nothing lurking in the background that he doesn’t know about that could come to light that’s been hidden by previous management.
That’s why you call it due diligence.
It happens all the time. The only difference is that he obviously bought the company with this goal in mind. It’s easier for one individual to buy a company outright then complete the necessary paperwork to transfer ownership. Let’s remember that he paid for this company up front.
Now is the time to move forward. The OTC is hot right now and will only get hotter. Too many quality companies are reversing into shells of which this is just one.
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