Crunching the numbers on EGC shells
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.
