Company: ALDA
Filing Date: 2025-03-18
Form Type: 10-K
Source: 0001548123-25-000017
Chunk: 5

Company: ATLANTICA INC
Filing Date: 2025-03-18
Form: 10-K
Item: Item 1
Chunk 5
---
 (the “ Form 10 Information”), may eliminate many of the perceived advantages of going public transactions with
shell companies. These types of transactions are customarily referred to as “reverse” reorganizations or mergers in which
the acquired company’s stockholders become the controlling stockholders in the acquiring company and the acquiring company becomes
the successor to the business operations of the acquired company. Regulations governing shell companies also deny the use of SEC Form
S-8 for the registration of securities and limit the use of SEC Form S-8 to a reorganized shell company until the expiration of 60
days from when any such entity is no longer considered to be a shell company. This prohibition could further restrict opportunities for
us to acquire companies that may already have stock option plans in place that cover numerous employees. In such instances, there may
be no exemption from registration for the issuance of securities in any business combination to these employees, thereby necessitating
the filing of a registration statement with the SEC to complete any such reorganization, and incurring the time and expenses that are
normally avoided by reverse reorganizations or mergers.

Amendments to Rule 144, adopted by the SEC and effective on February 15,
2008, codify the SEC’s prior position limiting the tradeability of certain securities of shell companies, including those issued
by us in any business combination, and further limit the tradeability of additional securities of shell companies; these proposals will

further restrict the availability of opportunities
for us to acquire any business or enterprise that desires to utilize us as a means of going public. See the heading “ Rule 144”
in Part II, Item 5, for a discussion of the general requirements of Rule 144 and the limitations of Rule 144 with respect to shell companies.

Any of these types of business combination transactions, regardless of
the particular prospect, would require us to issue a substantial number of shares of our common stock that could amount to as much as
95% or more of our outstanding voting securities; accordingly, investments in the private enterprise, if available, would be much more
favorable than any investment in us.

Management intends to consider a number of factors prior to making any
decision to participate in any specific business endeavor, none of which may be determinative or provide any assurance of success. These
may include, but will not be limited to, as applicable, an analysis of the quality of the particular business or entity’s management
and personnel; the anticipated acceptability of any new products or