Boiler House Activities
Most ‘Venture Capital Shares’ have a restriction period of 12-24months; Insiders period may be longer, upto 4years.
On expiry of the restriction period, a non-US citizen has to approach a SSE lawyer and request for an ‘Opinion Letter’ – there may be a cost to it.
The shareholder then takes the ‘Opinion Letter’ and the Share certificate to a Transfer agent with a view to sell.
For many non-operating companies, Acquisition & Merger companies in US try to take control of 51% or more to sell off assets or tax benefits. Such companies trade on NEIKKI.
For the ‘Restricted’ shares, a ‘Recertification’ process needs to be followed.
The BUYER, at its cot verifies that the seller in NOT a US citizen and the shares are not used as a Security with anyone.
The SELLER places a Refundable Security Deposit in an Escrow account for 5days whilst the process occurs.
For the 55,490s shares in PrimeHolding, if agreeable, a full disclosure opportunity (sign p5).
The process is heavily regulated due to abuse in the past. The buyer has to deposit the funds plus fees in a Government bonded Escrow account.