Over-the-Counter Bulletin Board (OTCBB) Shell Prices
By William Cate
Published July 1999
[http://home.earthlink.net/~beowulfinvestments/] [http://home.earthlink.net/~beowulfinvestments/globalvillageinvestmentclubwelcome/]
You can't buy a clean public shell in North America. I doubt you
can buy a clean shell anywhere in the World. I offer a startup spinoff
service because your spunoff public company is clean. Also, the spinoff
format allows me to arrange a European Million-Dollar Private Placement for
your newly spunoff public company. My startup spinoff fee is equal to the
retail price for an OTCBB shell. I offer a better deal. However, since most
entrepreneurs think OTCBB shell and not spinoff, I'm not overwhelmed with clients. As noted above, [Spinoff Interest] I can't handle more than four
startup spinoff clients a quarter. To date, I've never had four new clients
in any quarter.
In 1998, the OTCBB shell price was US$125,000. In January 1999, the
OTCBB shell price moved to US$150,000. The increase was explained by shell
sellers "as expectation that the 3,400 non-reporting companies, being
delisted from the OTCBB, would rush to buy OTCBB shells." The rush didn't
happen. Most non-reporting companies are being delisted from the OTCBB,
without a whimper. However, I moved my startup-spinoff fee to US$150,000.
The attorney receives US$75,000, the auditor earns about US$15,000.
Incidental expenses are about US$10,000. I'm paid US$50,000.
In the past two weeks, an experience OTCBB shell buyer appears to
be offering US$350,000 for OTCBB shells. He's a stock broker, who has
worked with shell buyers for over a decade as an agent. He should know the
value of an OTCBB shell.
I'll contact several more professional shell sellers. I intend to
confirm the doubling of the shell price before I adjust my startup-spinoff
fee. Assuming the OTCBB shell price has gone to US$350,000, I'll seek an
explanation for the more than doubling of the OTCBB shell price, in the
past six weeks. If the OTCBB shell price is now US$350,000, you can expect
that I'll double my startup Spinoff/Private November 1, 1999. The reason
that I added this article was to give you advance warning of the probable
increase in costs of doing a startup spinoff with me. If you have any
interest in doing a startup spinoff with me, I strongly advise you to
arrange a fee consultation with me this month. Otherwise expect to pay more
if you wait until November.
After confirming the higher retail shell price, I'll advise EFHC
(EFHLF) to adjust their fees upward to reflect the higher retail OTCBB
shell price. If you are thinking about raising US$10 million for your
operating company, you should meet with EFHC and its attorney this month.
Clients don't always take my advice. However, delay risks higher costs for
operating companies seeking the US$10 million from EFHC.
If you know OTCBB shell sellers, please contact them. If you can
check on OTCBB shell prices, I'd appreciate an email on the results of your
query. Ask your shell sellers about the price of a clean OTCBB shell with
over 80% insider control. You want to know the retail price and selling
terms. As I understand the US$350,000 offer, it's a cash payment, without
terms payment.
To contact the author: Visit the Beowulf Investments website: [http://home.earthlink.net/~beowulfinvestments/] Or, visit the Global Village Investment Club Website:
[http://home.earthlink.net/~beowulfinvestments/globalvillageinvestmentclubwelcome/]
About the Author
He has been the Managing Director of Beowulf Investments [http://home.earthlink.net/~beowulfinvestments/] since 1981 and is the Executive Director of the Global Village Investment Club [http://home.earthlink.net/~beowulfinvestments/globalvillageinvestmentclubwelcome/]