Reprinted by AFH with permission from DealFlow Media

Potential shell companies wishing to avoid the extended holding period for restricted stock under recent changes to Rule 144 of the Securities Act may be turning to a footnote in the new rule to avoid being categorized as a shell, according to experts in the restricted securities market.

Some companies listed on the Pink Sheets have mysteriously changed their names and descriptions of what business they're in, without ever listing as a shell. Some have then been able raise money with a PIPE, without restricted stockholders being subject to the longer holding period required of shell company investors under Rule 144.


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