Additionally, they paid $500K dollars for the shell, this is a very high price, you would be hard pressed to find many companies that have spent more for an OTC shell in the past 10 years.
I can only assume that the high price paid was because of the high insider ownership percentage, in this case 99%. So they do not have to issues additional shares, to increase their ownership percentage. That's not saying more shares wont be issued but they would be for acquisitions if it occurred.
OTC traders typically overvalue shells with low outstanding shares, which is foolish IMO because when there is a change of control, hundreds of millions of shares, even billions, can be issued to the new owners....and in pennyland typically are.
In this case they don't necessarily need to issue shares to the new owners because they already own the vast majority of the of the o/s.
Again, this just seems more shareholder friendly to me, as there is not that shock of massive amounts of shares being issued out of the blue after take over.
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