WildRhino Profile picture
Jul 11, 2021 10 tweets 5 min read Read on X
#IntoTheDD
#CustoAndFlow

(1/9)

Custodianships are one of the hottest plays right now. Why? People love the potential when it comes to reverse mergers.

But what are custodianships? I'll provide an overview in this thread.

REMINDER: The process differs based on state law.
#CustoAndFlow

(2/9)

A person, or business, may seek custodianship over a shell.

We call a ticker a shell when the associated public company is abandoned and State annual reports have not been filed in years.

The Secretary of State reports the status as Revoked or Inactive.
#CustoAndFlow

(3/9)

A petition for custodianship is filed with the courts to initiate the process.

Some of the information required in the petition is:
* Company is inactive.
* Applicant's evidence of attempted contact with officers.
* Applicant is a shareholder
#CustoAndFlow

(4/9)

Once custodianship is granted, the new officer will often follow the high-level steps below. We'll go over each one.

1. Reinstatement
2. Filings
3. Attorney Letter / Audited
4. Pink Current
5. Prep Ticker for Merger
6. Find Merging Candidate
#CustoAndFlow

(5/9)

1. Reinstatement--

A business has several requirements before reaching "Good Standing" status in their state:
1. Apply for reinstatement.
2. Pay reinstatement fee and a fee for each annual report missed.
3. Cure delinquent taxes.
#CustoAndFlow

(6/9)

2. Filings--

You know the process, a publicly traded company must remain financially compliant in order to remain in the "Pink Current" tier.

The new officer will file, at most, the last 2 year's worth of Quarterly and Annual Reports.
#CustoAndFlow

(7/9)

3. Attorney Letter / Audited--
In order to achieve Pink Current status, one of the following must be met:
* Have reports audited by a PCAOB auditing firm.
* File an Attorney Letter

4. Pink Current--
Once processed, the ticker will move to "Pink Current."
#CustoAndFlow

(8/9)

5. Prep Ticker for Merger--

There are no specific steps for this, but a custodian may:
* Reduce the authorized shares.
* Retire shares.
* Cancel outstanding debt.
* Work with convertible note holders.
#CustoAndFlow

(9/9)

6. Find Merging Candidate--

Find a private business looking to go public!
Did I miss something or make a mistake? Please let me know.

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More from @WildRhino

Sep 18, 2022
#IntoTheDD

(1/5)

My DD process--

The following are high-level steps that I use when it comes to researching and notating a stock.

Feel free to comment or shoot me a DM if you have questions.
(2/5)

Finding a ticker to research--

1. OTC Markets Screener: otcmarkets.com/research/stock…
2. Stock Managing Screener: otc.stockmanaging.com/screener

#1 allows you to filter tickers based on the market, price, volume & more.

#2 allows you to filter based on the share sector. ImageImage
(3/5)

Documenting your findings--

Now that we've identified a ticker to research, we need a place to store our notes.

I store all of my findings in a private channel on Telegram. The following Tweet explains the setup and provides the template I use.

Read 6 tweets
Sep 26, 2021
$TONR

(1/6)

@TonnerOne provided a high-level overview on their upcoming roadmap. Let's go over each catalysts.

Upcoming Catalysts--
* Pink Current
* Debt Cancellation
* Share Cancellation
* Merger
* Uplist to OTCQB

$TONR

(2/6)

Pink Current--
@TonnerOne filed their attorney letter on 09/14/21. Due to the OTC Markets backlog, it's taking approximately 14 days for a company to upgrade to Pink Current.

Expected Date: 09/28/2021
$TONR

(3/6)

Debt Cancellation--
Per their latest 10Q, the company is negotiating with creditors to find ways of resolving their debt obligation.

The company changed their authorized shares from 4B to 3.2B. With the OS nearly maxed, it will prevent diltuion.
Read 6 tweets
Sep 21, 2021
$SHOM

(1/7)

* No toxic notes or dilution.
* CEO owns 70% of the common stock.
* Float is 1.07 billion.

Interested in this healthcare services, medical equipment, and digital health company?
$SHOM

(2/7)

$SHOM is a medical company that focuses on:
* Digital healthcare (Health Coach App)
* Weight Loss (True Diet Plan)
* Wearable Medical Devices

Let's go through each.
$SHOM

(3/7)

Health Coach App (1/2)--
The medical health consultation app provides in-office medical care and assessments for:
* Anxiety
* Depression
* TCM Comprehensive
* Health
* Nutrition
Read 8 tweets
Sep 20, 2021
$TONR

(1/5)

@TonnerOne will upgrade to Pink Current any day. With their press release highlighting their business plan nearing, let's take a look at what's going on.
$TONR

(2/5)

Share Structure--
To prevent dilution, the company decreased the authorized shares from 4B to 3.2B.

Company spokesman, @CalvinRitche, announced no reverse split.

Per the 10Q, they are seeking a share reduction via old certificates.
$TONR

(3/5)

Operations--
Within 2 weeks we'll see a press release detailing:
* New management
* Direction for the company
* Reverse merger update

Read 5 tweets
Sep 12, 2021
#IntoTheDD
#ReverseSplits

(1/8)

Reverse splits are often seen as evil incarnate. This is sometimes true and false.

Today we'll slightly go over:
1. What is a reverse split
2. The high-level process
3. The good
4. The bad
5. The ugly
6. How to spot a reverse split
#ReverseSplits

(2/8)

What is a reverse split--
* A reduction of shares which increases the share price
* Does not change the value of your shares
* Market cap does not change
#ReverseSplits

(3/8)

The High-level Process--
1. Announcement via 8-K, 10-Q, 10-K, or articles of incorporation.
2. Shareholder approval (if required).
3. Company submits notice to FINRA 10 days prior to the effective date.
4. Split posted to the OTC Daily List.
Read 10 tweets
Jul 13, 2021
$EEGI

(1/5)

The SEC's rule, determining which OTC companies can and cannot be quoted, goes into effect September 28, 2021.

On August 13, 2021, TDA will prohibit the purchasing of these securities.

Want to know why I believe $EEGI is safe? Image
$EEGI

(2/5)

Companies residing in the Pink Current tier are safe from being suspended based on this new rule.

On June 18, 2021, @JoshEgelston1 advised that their quarterly and annual reports are ready to be filed upon gaining access to OTCIQ.

$EEGI

(3/5)

On July 9, 2021, the company confirmed that they are in the final stages of gaining access to OTCIQ.

Once the invoice is taken care of, we should see the already completed reports filed.

Read 5 tweets

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