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Posted On: 01/21/2022 8:24:23 AM
Post# of 85944
another explanation..DEFINITION AND EXPLANATION OF “SHELL COMPANY”
Rule 144(i)(1) prohibits reliance on the rule for sales of restricted stock and any stock held by affiliates of the issuing company into the public market if the issuing company is now or at any time previously has been a “shell company”, unless the requirements of Rule 144(i)(2) are satisfied.
Rule 144(i)(2) does permit the use of Rule 144 by stockholders of an issuing company that has previously been but is not now a shell company if the issuing company is required to file reports with the SEC, has been filing reports with the SEC for at least one year that contain information about its current operating (or development stage) business activities (not including shell company activities) and is current in its reporting obligations at the time of the proposed sale in reliance on Rule 144.
Rule 144(i)(1) prohibits reliance on the rule for sales of restricted stock and any stock held by affiliates of the issuing company into the public market if the issuing company is now or at any time previously has been a “shell company”, unless the requirements of Rule 144(i)(2) are satisfied.
Rule 144(i)(2) does permit the use of Rule 144 by stockholders of an issuing company that has previously been but is not now a shell company if the issuing company is required to file reports with the SEC, has been filing reports with the SEC for at least one year that contain information about its current operating (or development stage) business activities (not including shell company activities) and is current in its reporting obligations at the time of the proposed sale in reliance on Rule 144.
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