Reverse Mergers Under SEC Microscope
If you are considering taking your closely held corporation public by merging it into a shell company that is already public, but inactive, you shoud read this article by Theodore F. DeStefano from the E-Commerce times, who states:
"Presently, the SEC has less tolerance of reverse mergers and shells. In fact, it has recently suspended trading on 26 stocks of shell companies. It plans to take steps to assure that these stocks are never traded again by revoking the registrations of these companies."
