Remember Our Fallen

Whether you are a smallcap investor, CEO of Facebook, plumber, investment banker, millionaire entrepreneur, homemaker, middle manager or chef, if you are an American today, whether you are part of the 99% or the 1% I hope you will take a little time out to think about the meaning of this holiday. First started after the Civil ...

Senate Introduces Startup Act 2.0 to Help Early Stage Companies

A bipartisan group of US Senators on Tuesday announced the introduction of a bill known as Startup Act 2.0. The actual draft bill is not available yet so this brief summary comes from the Senators’ press release. The focus appears to be on companies less than 5 years old, which the release notes has been ...

#Facebook IPO: No Perfect Way to Go Public

All of the regulators’ efforts to rein in actual and perceived abuses in reverse mergers and other IPO alternatives have rested on a somewhat flawed assumption: that an IPO is the gold standard method of going public techniques and that all companies should strive to be “IPO-worthy” as the ideal way to have a publicly ...

Is this the End? Again? 1

Rule 419. “Evergreen requirement.”  Seasoning of post-reverse merger companies. Official public warnings about risks of these transactions. And now the suspension of nearly 400 non-reporting shells. Does the SEC want to end reverse mergers? They say no. They say they want to end the pump and dump schemes that have accompanied some deals. That they only ...

Thoughts on SEC’s Trading Suspension of Pink Sheet Shells 2

As noted below, yesterday the SEC suspended trading for 10 days in 379 shell companies which are non-reporting. All are presumably trading on the platforms of OTC Markets and it appears most did not respond to SEC inquiries for information and the like. These companies will not be able to trade again until they make ...

#Crowdfunding Reminder from SEC: Don’t Do it Yet! 1

In a tersely worded statement on their website recently (re-highlighted on the site today), the SEC reminded excited players in the crowdfunding world to hold their horses until the SEC writes the rules required by the Jumpstart our Business Startups (JOBS) Act. It’s short enough so I will reproduce it here: “On April 5, 2012, ...

Join Me at the Reverse Merger Conference!

I will be speaking (as I think I have every year since they started) at the DealFlow Media Reverse Merger Conference on June 5 here in NYC at the W Hotel in Union Square. To register go to www.dealflow.com (no financial benefit to me!). If you have any interest in IPO alternatives and getting companies ...

More on SEC’s Record-Breaking Shell Trading Suspension

Following up on the post below, I have looked at the rest of the SEC’s released information about the temporary 10-day suspension in trading of 379 shell companies trading on OTC Link (operated by OTC Markets). A few tidbits (I am saving commentary for now): The SEC dubbed the plan “Operation Shell-Expel.” The head of SEC Enforcement ...

Flash: SEC Attacks Nearly 400 Pink Sheet Shells

This morning, the SEC announced a huge suspension in trading of 379 non-reporting shell companies, the largest suspension in the SEC’s history, according to their press release. Apparently, the companies will not be permitted to be quoted again until they provide current information, including financial information. As a practical matter, for most of these pink ...

PCAOB to Attend Inspections of Chinese Auditors

In what appears to be a break in the logjam between US and Chinese regulators, The New York Times today reported that James Doty, head of the US Public Company Accounting Oversight Board (PCAOB), said that their agency will begin sending Chinese speaking examiners to sit in on Chinese government inspections of Chinese auditing firms ...