Pinksheets and Reverse Mergers

[rpr]

Wow, that's a hostile response.

My question is really why they have a public company if the stock price is worthless and they don't need to be public to make films. They are clearly making money and lots of films and it has nothing to do with Entourage.

Maybe you missed the part that my friend wants to take a company public with a producer I introduced him to and $25M he already has. I just met this guy recently so I was looking up information since I've always had a negative stigma towards OTCBB and Pinksheet stocks.

Like what is the benefit to going public if he doesn't need to (to raise more money?).

And since I'm doing a smaller separate deal, I was curious if it would be more advantageous for us to consider this option and if we did we'd do it by hiring/retaining the right people.

I can read financial statements. You must have a really [censored] life to lash out at people like an insane person. Thanks for being an [censored].

[DesertCat]

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Wow, that's a hostile response.

My question is really why they have a public company if the stock price is worthless and they don't need to be public to make films. They are clearly making money and lots of films and it has nothing to do with Entourage.

Maybe you missed the part that my friend wants to take a company public with a producer I introduced him to and $25M he already has. I just met this guy recently so I was looking up information since I've always had a negative stigma towards OTCBB and Pinksheet stocks.

Like what is the benefit to going public if he doesn't need to (to raise more money?).

[/ QUOTE ]

To monetize ownership in a company you already have. Assume you have a company worth $25M, but it would be hard to sell minority stakes (finding/selling to investors). If it's public you can sell shares in a legal, codified way to a large supply of willing buyers. And assuming you do it right, you'll be able to control the company with little say by the minority shareholders.

Another answer is to swindle or defraud people. You issues lots of worthless stock and pump it with press releases telling the world how great the company is or will be. You then sell some of your shares to the suckers, and have the company issue you more as compensation.

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I can read financial statements. You must have a really [censored] life to lash out at people like an insane person. Thanks for being an [censored].

[/ QUOTE ]

I am having a great life, but a pretty crappy week. So I apologize for being so sarcastic. But at least you did read their financials, which is good. Always read the financial reports, usually it's pretty easy to determine if a company is a scam or not. I haven't and won't read that companies reports, but from everything you wrote it seems like a total scam.

[rpr]

Most of the people I've known involved in OTCBB or Pink Sheet companies have been fraudulent or questionable at best.

Apologies for my negative comment. Also I don't own that stock, so I wasn't trying to promote it. It just seems like an anomaly since they are producing Al Pacino films and if they had a credible public company they could position themselves for bigger growth.

As for my friend, the point of a film fund is to leverage more bank debt and use less equity per film and eventually you build a large asset -- the film library. So I suppose he wants to go public to raise more money, build a bigger library with aspirations of being the next Lions Gate in 5-10 years. But it just seems like a scam.

Thanks for your info.

[DesertCat]

I used to own a company (OCCF at the time) ironically because it was doing a reverse merger to stay on Nasdaq. Supposedly CEO/Founder had originally taken it public simply by hiring his own lawyers and filing the proper legal paperwork in every state.

[stephenNUTS]

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Most of the people I've known involved in OTCBB or Pink Sheet companies have been fraudulent or questionable at best.
Apologies for my negative comment. Also I don't own that stock, so I wasn't trying to promote it. It just seems like an anomaly since they are producing Al Pacino films and if they had a credible public company they could position themselves for bigger growth.

As for my friend, the point of a film fund is to leverage more bank debt and use less equity per film and eventually you build a large asset -- the film library. So I suppose he wants to go public to raise more money, build a bigger library with aspirations of being the next Lions Gate in 5-10 years. But it just seems like a scam.

Thanks for your info.

[/ QUOTE ]

You kinda said it all right there.The MAJORITY of pink sheet stocks...are GARBAGE,with pump and dump schemes,shelf offerings,etc

Lets face it... a REAL company that makes REAL money does not trade at 3/5ths of a penny?
C'mon...even an average lay person can/should see that

The ONLY ones usually making any money are the insiders or management.

There are still very high prohibitive costs though,that are associated with being and staying a public entity on any exchange however

SF [img]/images/graemlins/cool.gif[/img]