I am sure all of you are aware that XTen Networks, (which recently became the soft phone of choice for Vonage), has gone public. It is the way they have done it which is kind of murky, and amusing at the same time. So here is how it happened: a company called Broad Scope Entertainment merged with XTen. It was a stock that (barely) traded on the NASDAQ Bulletin Board.
bq. Until we acquired, by way of a merger, all of the shares of Xten Networks, a private Nevada company, our focus has been operating an adult entertainment and services directory website located at www.bcescorts.com through our wholly owned subsidiary, Broad Scope Entertainment, Inc. Our website provides a directory of adult entertainment and service providers where personal escorts, exotic dancers, models and vendors of adult entertainment products located in the Province of British Columbia, Canada may list and advertise their profiles, products, services, pictures and contact information on our website. (Broad Scope SEC filings)
On April 26, 2004 the two companies decided to merge, and then on April 29th, the deal was consummated. This kind of a deal is called a reverse IPO where a small private company buys a shell and does not have to deal with all the legal stuff SEC throws your way. My advice to the XTen guys: don’t sell the escorts business – it will make more money than the hyper competitive soft phone business.