What is a public shell?
This is the proper definition of public shell: A public shell is a company that has shareholders but has no or minimal assets or earnings. Public shells are also called a shell company or shell corporation. In more formal circles they can be referred to as public shell company or public shell corporation. The SEC Securities and Exchange Commission has made many rule changes regarding public shell corporations and they are much less attractive.
There are three types of public shell companies:
Non-trading Public Shell: These have no ticker symbol, no bid or ask and are not quoted on the Pink Sheets or OTCBB. They are of very limited use and it take 4 or 5 month for it to begin trading to get a trading stock symbol. Instead of buying a public shell for sale you can just take your own company public directly as a direct public offering. By going public with a direct public offering instead of a public shell company you save time and money and avoid potential risks of doing an ill advised public shell merger also called a reverse merger with a public shell.
Pink Sheet Shell that is a trading Public shell: These shells have a ticker symbol, but because they are not SEC reporting companies - that is they are not required to file annual reports on Form 10-K or Form 10-Q, episodic reports on Form 8-K and other required SEC reports - they can ONLY trade on the Pink Sheets.
OTCBB Shell that is Trading: These are also known as OTC Bulletin Board Shell. These companies have a ticker symbol, are SEC reporting and trade on the NASD Over-the-Counter Bulletin Board.
In the traditional reverse merger with public shell company, your company reverse merges with the public shell corporation; your business is deemed to be the surviving entity. You and you’re the people who own your stock end up with a significant majority, but not all, of the issued and outstanding stock after the reverse merger with the public shell is completed. This transaction is called a shell company merger or shell merger. These Public Shell corporations or Public Shell companies are also called a public shell company or public shell corporation.
A Pink Sheet Public Shell or an OTCBB Shell (Over the Counter Bulletin Board Shell) are entities that are left over from a failed company so their can be many hidden liabilities. Most companies just opt to take their company public directly and stay away from the public shells.
We would be happy to take you public on any exchange you qualify for. New companies can go public on the Pink Sheets, the OTCQX Prime or the OTCQX premier or the OTCBB. If you go public on the Pink Sheets first it is rather easy to move up to the OTCBB or NASDAQ. The over the counter bulletin board does not have any asset or revenue test but NASDAQ does.
Learn More about why is better to go public directly and do a direct public offering than do a merger with a public shell.
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