Market conditions have almost no bearing on the situation. Regular initial public offerings can drag on for a year or more, from when the idea pops into the chief executive's head until he or she actually gets a check. Unfortunately, when a company transitions from an entrepreneurial venture to a real public company fit for outside ownership, senior management's time is at its most valuable. Time spent in seemingly endless meetings and drafting sessions can have a disastrous effect on the growth upon which the offering is predicated, and even nullify it. To actually bring the deal to the closing table, the costs increase.
Many shell companies have what is known as a tax-loss carryforward.
This means that a loss incurred in previous years can be applied to income in future years. When this occurs, the future income is sheltered from income taxes. Since most active public companies become dormant public companies through a string of losses, or atleast one large one, there's a better than average chance the shell you meet will offer this opportunity. The issuance of additional shares in a secondary offering Exercise of warrants. Warrants are options that give the holder the right to purchase additional shares in a company at predertermined prices.