Bulletin Board Shells generally derive from a failed public company business. A company may have traded on the bullet board when operating and subsequently suffered a failure of the operating business leaving behind a shell. Moreover, NASDAQ exchange traded and AMEX Companies experience operational difficulties on a regular basis. Some fail to succeed in an ever competitive market, while others simply cannot adapt to what has become a global economy.
When this occurs, these companies may no longer be able to meet the listing requirements of their respective exchanges such as trading price or market capitalization. The Company then “falls off” to the OTCBB or Bulletin Board over the counter market. When the operating business ceases entirely it leaves behind a Bulletin Board shell Company. It also leaves behind a prime opportunity for up-and-coming private companies to take their place in the public market via a reverse merger.
The OTCBB Shell Company has no operations and no or nominal assets and liabilities, but the shareholders remain. In the process of an operating business failing and leaving behind a Bulletin Board Shell, many issues must be addressed in order to ensure that the successor business or merger candidate does not end up assuming the liabilities and responsibilities of the former operating business. In most cases these issues can be rectified. For example, prior liabilities may be written off if the statute of limitations has passed, or the debt may be settled.
The process of diagnosing potential issues with a Bulletin Board Shell is known as Due Diligence.
Why would they merge with KADR? Don't you see they took every ounce of value from us and left us with nothing but the large debt? Unless you think one or more of KADR's subsidiaries has value they have no reason to help us out. They aren't just suddenly going to feel sorry for us, it's business. Look at that rep on their facebook page, they could care less too. None of them care about the money they lost on their shares that they never sold because they are going to be looked after with the new company and have nothing to worry about.
Steve nice find ! So reading under the clean up part it states they would have to reverse the shares of the shell stock to get the numbers down but it would increase the stock value. So if this is true the shares would still be of value but my question is does it make money from the new company or is it stuck at the new price? Just hoping it has some value. I do believe what justin posted about talking to amerirade -- value in stock somewhere!
Link my master piece research (see top) and let them start here to see that all these big boys walgreens, sxc, and CatalystRX along with Arcadia was collaborating for their own benefit to compete for a bigger share of PBM business as 2012 is selling season.
In case we are really screwed! People saved these findings for future use because yahoo kadr message boards might be deleted if we are toast.