87 LC2, Because that’s how it’s done. The old company is awarded to a Custodian, that being Emergent, which is comprised of experienced attorneys who know how to clean up the books of the old company, and eliminate all convertible debt, making the company debt free, and eligible for a reverse merger candidate to take advantage of a less expensive way to go public, and incorporate the merging company’s assets into the newly formed public corporation. (Example: $NUGN)
Until such time as the shell is funded, the warning will remain. That’s why investors are attracted to these clean shells that have tremendous upside potential because of the potential gains that might correlate to the valuation of the incoming private company. Hope this helps…
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