Cancer Capital is a shell company with no operating business, revenue, employees, or products. Its sole purpose is to identify and acquire a private company through a merger or acquisition, effectively providing that target company with a back-door route to public markets — cheaper and faster than a traditional IPO. Cancer Capital's original business, developing medical waste treatment equipment, was abandoned in December 1997 shortly after incorporation. The company generates no income and funds its search for acquisition targets through loans and advances from management and major shareholders, and may issue stock in lieu of cash to pay for services. If a merger is completed, existing Cancer Capital shareholders would likely retain a small stake in the combined entity — potentially 20% or less — representing significant dilution. Cancer Capital acknowledges it may fail to find a suitable target and could become dormant or be dissolved.
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