Replies to post #19010 on Livechain Inc (LICH)

[nsomniyak]

Here's a thought - something that no one seems to talk about. Yes, buying a shell is the "fast path" to going public. It gets your company trading quickly and with far less red tape. However, the flip side of this is that the traditional IPO process requires a LOT more due diligence and rigor and the setup of sustainable processes for being public. Buying a shell skips all that, so companies are often public without the "process infrastructure" to meet the ongoing requirements that being public imposes. It is no wonder that the management teams then often seem "inept" at operating a public company.

If the new company is Chinese, you can add in a cultural bias towards not providing information to outsiders (and shareholders, especially legacy shareholders, are often viewed as outsiders).