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Crunching the numbers on EGC shells

November 19, 2012

In a post three months ago, we counted 46 blank check companies that had declared Emerging Growth Company status under the JOBS Act – a declaration arguably at odds with the intent of the provision, which is to make it easier for job-creating companies (as opposed to “empty shells”) to raise capital.  At that time, about 1 out of everyone 9 self-declaring EGCs was also a blank check company.

How have things changed since August?  Our data tells us that the percentage of EGCs that are blank check companies has actually increased to more than 1 in 8.  Here are the numbers:

09_41_17-egg_web.jpg from freefoto.com

  • Total number of self-declaring EGCs:  612
  • Number that are blank check companies:  83
  • Percentage: 13.6%

So who are these companies, and what does their EGC-related disclosure look like?  If you have a Knowledge Mosaic account, you can find out by clicking here.

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