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Intro to CPC’s - Part II: Definitely Not SPACs
By David Feldman at 9 March, 2010, 7:04 am
As mentioned in the first installment of this series on CPCs, or capital pool companies, in Canada, there are some differences between these smaller shell companies that go public on the TSX Venture Exchange seeking combinations with development stage companies and SPAC’s, or special purpose acquisition companies in the US, which raise large amounts of money hoping [...]
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Tip of the Week: Don’t Forget Good Standing!
By David Feldman at 9 March, 2010, 3:14 pm
Sometimes when corporations enter into important transactions the parties neglect to confirm that the corporation is current and in “good standing” in its jurisdiction of incorporation. Too many times this is assumed, or reliance is made on a certificate of good standing that is not current.
A corporation that is not in good standing might not be [...]
Intro to CPC’s - Part II: Definitely Not SPACs
By David Feldman at 9 March, 2010, 7:04 am
As mentioned in the first installment of this series on CPCs, or capital pool companies, in Canada, there are some differences between these smaller shell companies that go public on the TSX Venture Exchange seeking combinations with development stage companies and SPAC’s, or special purpose acquisition companies in the US, which raise large amounts of money hoping [...]
Read More >>Intro to CPC’s - Part I: Basics
By David Feldman at 7 March, 2010, 9:17 am
We’ve all been hearing a lot about “CPCs,” emanating out of Canada. CPC stands for capital pool company. Essentially the program permits shell companies to go public through an IPO, raise money and then hope to conclude an acquisition through reverse merger. The TSX Venture Exchange established the program, which is not available in all Canadian [...]
Read More >>Tip of the Week: Using a Foreign Audit Firm? PCAOB Registration May Not Be Enough
By David Feldman at 26 February, 2010, 8:11 pm
Many folks don’t realize that if a company that is public or going public uses a foreign auditing firm, even if that firm is registered with the US Public Company Accounting Oversight Board (”PCAOB”), if that firm has never filed anything with the SEC, the Commission staff first will require the firm to demonstrate its expertise, competency [...]
Read More >>Reverse Merger Report Touts Form 10 Shells
By David Feldman at 21 February, 2010, 12:28 pm
In the most recent issue of the Reverse Merger Report, the growing popularity of using Form 10 shells in reverse mergers of Chinese companies was reported. In particular, notes the article, some Chinese dealmakers are finding frustration with companies merging onto the OTC Bulletin Board. They feel that WestPark Capital’s WRASP structure, in which a [...]
Read More >>Tip of the Week: How Long Does it Take? Part III
By David Feldman at 15 February, 2010, 2:58 pm
New potential clients pondering a reverse merger or self-filing always ask, understandably, how long does the process take to get my company public? How long to get trading? How long until real trading commences? I broke this down into three responses. We talked first about how long the process can take simply to be able [...]
Read More >>Tip of the Week: How Long Does it Take? Part II
By David Feldman at 11 February, 2010, 7:49 pm
New potential clients pondering a reverse merger or self-filing always ask, understandably, how long does the process take to get my company public? How long to get trading? How long until real trading commences? I broke this down into three responses. We talked first about how long the process can take simply to be able [...]
Read More >>Tip of the Week: How Long Does it Take? Part I
By David Feldman at 9 February, 2010, 7:21 am
New potential clients pondering a reverse merger or self-filing always ask, understandably, how long does the process take to get my company public? How long to get trading? How long until real trading commences? I’ve decided to break this down into three responses. Let’s talk first about how long the process can take simply to [...]
Read More >>Is Financial Reform (and 404(b) Relief) Dying in the Senate?
By David Feldman at 5 February, 2010, 2:45 pm
I try not to make this a political blog and tend not to cover major legislative activities, except of course in this instance where it has a direct impact on smaller public companies. Back in December the House of Representatives approved a sweeping financial services reform bill that would add more regulatory oversight to banks [...]
Read More >>Tip of the Week: Market Downturn? Reverse Mergers Shine
By David Feldman at 5 February, 2010, 7:14 am
In the wake of the cataclysmic 2008-2009 market meltdown, we sometimes forget the history of reverse mergers and IPO alternatives. As a correction in the current market rally appears to be hitting, some players have increasing concern about completing APOs. Of course markets heading up are better than the alternative for most investors. However, for [...]
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