Jill Kelly Productions is now believed to be the only domestic adult production company to be publicly traded after finalizing what is known as a “reverse merger,” a common method used by smaller companies to go public.
In a reverse merger, a privately held company, in this case JKP, merges with what is known as a “shell” corporation. A shell corporation is a company with no assets or liabilities that is called a “shell” because all that exists of the company is the structure and shareholders.
In the case of JKP the shell company - IDC Technologies, Inc. - “bought” 100 percent of JKP with 95 percent of all of IDC’s stock. In other words, JKP bought the existing publicly traded company for five percent of their own stock to achieve the status of a public company that a reverse merger offers.
“Being public allows us to vigorously pursue growth and acquisitions. We can’t tell you what we are going to acquire, but we’re aiming for vertical integration with related companies,” JKP co-founder and CEO Bob Friedland told AVN.com.
Vertical integration is combining several companies that represent both the supply, production and distribution aspects of a market.
For the moment, the company is traded over the counter under the name IDC Technologies, Inc. Paperwork is already in the works to change the name of the company to Jill Kelly Productions. Eventually the company hopes to be listed on NASDAQ or AMEX under the JKP banner.
