Archive for January, 2009
Stanford Launches $100 Million Initiative to Tackle Energy Issues
By David Feldman at 24 January, 2009, 1:05 pm
Recognizing that energy is at the heart of many of the world’s tribulations—economic, environmental and political—Stanford is establishing a $100 million research institute to focus intently on energy issues, President John Hennessy announced on January 19. The $100 million in new funds will enable the hiring of additional faculty and support new graduate students, in addition to the more than $30 million in yearly funding now spent on energy research.
Read More >>Tip of the Week: Post-Merger Registration
By David Feldman at 21 January, 2009, 6:55 pm
Life used to be so simple. Companies merged with shells, after which any shareholders holding restricted, or untradable shares, would register their shares for resale and be able to sell them in a matter of a few months. Sometimes, this registration encompassed almost all the shares outstanding in the merged company. Trading then commenced, and the reverse merger technique was validated.
Read More >>Chris Cox, Ex-Chairman
By David Feldman at 21 January, 2009, 12:32 pm
The SEC’s website now lists Christopher Cox as the Commissioner’s former Chairman, having resigned on January 20, 2009. Yet I hadn’t seen any sort of announcement, but there you are. Now we wait for Mary Schapiro to be confirmed as the 29th Chairperson and its first female chair. It is not clear yet when that [...]
Read More >>A Most Extraordinary Day for the US of A
By David Feldman at 19 January, 2009, 1:58 pm
When one looks for synonyms for the word “inauguration,” you get commencement, induction, initiation, inaugural, institution, investiture, launch, opening, setting up. It seems that tomorrow’s swearing-in of President-elect Barack Obama is all of these things. In a first ever, my son’s school will have all students in a special assembly to watch the festivities. Your [...]
Read More >>Rule 144(i) Relief Will Have to Wait
By David Feldman at 18 January, 2009, 8:32 am
“There are currently no scheduled meetings or events.” This is the ominous statement on the SEC’s website under “upcoming events.” If the Commission is going to meet to approve new rules or take action, there is a “sunshine notice” giving at least 10 days notice typically. Therefore it appears there will be no meeting of [...]
Read More >>Ms. Schapiro Goes (Back) to Washington
By David Feldman at 16 January, 2009, 11:27 am
I listened in geek-like to C-SPAN’s coverage of some of SEC Chairwoman-designate Mary Schapiro’s Senate confirmation hearing yesterday. Remember she is not only the head of Finra, she is a former SEC commissioner. Here are some bullets: 1. She supports the regulation of hedge funds. 2. She want the SEC to have more enforcement power. 3. She wants risk assessment [...]
Read More >>Tip of the Week: Watch Out for Time Pressure
By David Feldman at 16 January, 2009, 5:28 am
A common practice with problem partners or shell owners involves insisting a deal must be consummated quickly. In too many cases, the shell operator pressures a private company’s principal to ignore his attorney’s entreaties to ensure that full due diligence is completed. “We have another candidate for the shell,” or “You know our shell is clean, what’s all this need for due diligence?” are common themes in deals. Be suspicious of these tactics.
Read More >>PIPE-line Also Down
By David Feldman at 14 January, 2009, 8:39 am
PrivateRaise.com, which publishes industry data about the PIPE industry, released more sobering news. First, the total number of PIPEs last year was the lowest since 2003 (there were about 1100 deals). There were about $123 billion in PIPEs in 2008, but only $19 billion were PIPEs for companies with less than $1 billion market capitalization. [...]
Read More >>Dismal Year End for Reverse Mergers
By David Feldman at 13 January, 2009, 12:00 pm
It’s official. According to DealFlow Media’s Reverse Merger Report, only 12 reverse mergers were completed in November and December, capping the worst year for reverse mergers since 2004. The number of deals in the last quarter of 2008 was down over 60% from the prior year period, and the average market value was down a whopping [...]
Read More >>Join Me in China!
By David Feldman at 13 January, 2009, 5:33 am
At the end of March, DealFlow Media will hold its PIPE conference in Shanghai. Check it out at www.dealflowmedia.com. I will be presenting on due diligence issues and am really looking forward to getting back to China. In the pause that we’re pretty much all experiencing in the deal world, it seems China also is taking [...]
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