checking legitimacy of an IPO/reverse merger

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Directional

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A colleague in the US is looking to invest a significant amount into a company called LOTO WORLD - they are doing a reverse merger into a shell company who's symbol on the LSE is FII.

Stocks and shares are not my bag at all, so I wondered if anyone out there can advise me on the best way to do some homework on this shell.
 
Arbitrageur,

Could you clarify whether this a merger or reverse takeover. Unless it is a new merchant banking wheeze, I've never heard of a reverse merger.

Grant.
 
hmm.. the way it was explained to me, the non-listed firm LOTO WORLD is merging with the listed "shell" firm SII in order to take LOTO WORLD public without going through the lengthy IPO process.

Does this make sense? or is my non-share naivety showing through with glorious abandon? :)
 
Loto World

Arbitrageur said:
A colleague in the US is looking to invest a significant amount into a company called LOTO WORLD - they are doing a reverse merger into a shell company who's symbol on the LSE is FII.

Stocks and shares are not my bag at all, so I wondered if anyone out there can advise me on the best way to do some homework on this shell.
Click to expand...


Hello, i was researching LOTO WORLD when i came upon your post... i hope you did not invest in this company, as of this date it has not gone public and has avioded all contact with the shareholders in the USA... i found this BLOG tanaslotoworld.blogspot.com you should take a look...
 
Loto World

mb-loto said:
Hello, i was researching LOTO WORLD when i came upon your post... i hope you did not invest in this company, as of this date it has not gone public and has avioded all contact with the shareholders in the USA... i found this BLOG tanaslotoworld.blogspot.com you should take a look...
Click to expand...

Hello, I also have some friends that invested in LOTO WORLD..Thankfully I passed! Here's another Blog you should see..:

Arthur Chaparyan & His Take On The Universe: Loto World IPO
 
Loto World

No news at all for you..Except keep hearing new excuses about the delay of the IPO..Hope you didn't bet the farm on this one..!
 
I didn't bet the farm but I did invest a little over two years ago. My opinion, and this is only my opinion, is this is dead in the water. Your money, and mine, is probably long gone. In the two years since I've invested, I've heard from their management only twice. Not a very good record of communication. My guess right now, is that they're going to file bankruptcy some time in the near future, most likely in 2009, so you'll be able to write off the loss on your taxes next year.
 
Has anyone heard anything more about Lotoworld?! I think my investment is long gone...have I been scammed?! The very little contact I recieve from Lotoworld, which comes only when repeatedly demanded after being ignored, is all excuses and false promises. I'm pretty fed up, and would like to know if others are having similar experiences with Lotoworld, or if anyone actually has some genuine good news to share. Thanks for your time!
 
Everyone seems to be of the same consensus..Nothing but new excuses! Always going to happen anyday! I am hoping for some friends sake that my hunch about this is wrong..For I feel like my friends, and you, have indeed been scammed..As you suspect also~!
 
As an addendum to my post right above yours, I would say, in my opinion, yes, you and I, and many other investors, have indeed been scammed. Only my opinion. I've been an investor in this "company" for over two years now, and I've heard from them only twice, the last time being just about a year ago. It's the same garbage every time---contracts are being completed, making deals for funding, every intention of going public. This company has been taking investor money since March of 2005---just about four years. It doesn't take four years to take a company public. My suggestion to you would be to look into possibly filing complaints with a few various Federal & State agencies---Nevada Secretary of State (since they're based in Nevada), State of CA Dept. of Corporations (because you reside here), and the SEC or Nasdaq. I think it's the only way you'll truly find out what's going on with this "company".
 
Thanks all for your feedback...not what I was hoping to hear, but it was unfortunately what I was expecting to hear after years of getting the run around and false promises from Lotoworld. A very frustrating and disappointing situation. Just wish I could get my investment back, and be less trusting of promises without hard facts next time around. If anyone hears anything, news would be appreciated. Again, thank you.
 
By the way "blobbie," very sorry to hear you're in the same boat as me with this BS company. If I hear one more promise from Lotoworld that they are going public in three weeks (seems to be the magic number with them) after they get "just one more thing/signature/delivery of money/etc." I'm going to vomit. Personally I think the couple running it must have been having a lot of fun spending all our money without accountability. Never have I been so jerked around or dealt with more unprofessionalism...this takes the cake.
 
I always figured that my investment went for 2-3 months mortgage on the Castaldo's Florida home.
 
How did you guys hear about this ?

If it was through unsolicited emails/calls telling you about a great new deal you can, then it's a scam.

Great opportunities do not come along often and when they do, people don't get on the phone and start calling people to give it away.

These people also set you up - telling you that you should just invest a small amount - and then mention a figure of $25K. This sets you up for a 'pride fall' - after all, now they've told you a small amount is $25K, you can't tell them you want to start with $200 can you ?
 
I heard about Loto World through a relative, who has a supposedly large stake in Loto World, and who has supposedly snared a large number of other investors, both friends & other family members. It all seemed pretty real...in the beginning. But then, after months of non-communication, I began to suspect I had been scammed. If, in the end, this does turn out to be a scam, I wouldn't know whether my relative was involved in the scam or not. But I do intend to find out by filing complaints with the appropriate State/Federal agencies. And, if it does turn out to be a scam, and if it is found that my relative was involved in the scamming, then I hope he goes down with the rest of them.
 
I see this thread has been viewed 923 times. Can anyone suggest a course of action at this point? Hiring an attorney to investigate seems like throwing good money after bad money. Complaints to any State/Federal agencies; can they do anything since Loto World is still a privately owned company? Does anyone who knows about these types of things have any suggestions other than just to forget it and write it off as a loss? Which, incidentally, I can't do because, technically, Loto World is still supposedly an active, operating company, and hasn't filed for any type of bankrupcy.
 
Arb,

A reverse takeover is a bull**** term for a spank shop to get listed as if its
gonna reverse into a company thats already listed on a regulated exchange.
You cant do it in the UK or a few countries for that matter as to get listed
on the AIM or FTSE the firm has to satisfy lots of strict criteria.

Usually dodgy American lawyers set these companies up to be lisetd by satisfying
the criteria of an American exchange. One of the main rules is that once the reverse takeover is completed the company cannot sell their stock to US residents and if they
sell to anyone else EG: Stupid greedy brits, that they cant sell for 12 months so the
company has time to establish. Reg S Stock.

In short its a Spank Shop.

If you already know this my apologies.

Ged


Arbitrageur said:
hmm.. the way it was explained to me, the non-listed firm LOTO WORLD is merging with the listed "shell" firm SII in order to take LOTO WORLD public without going through the lengthy IPO process.

Does this make sense? or is my non-share naivety showing through with glorious abandon? :)
Click to expand...
 
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