A development stage company that has no specific business plan or whose business plan is confined to merging with or acquiring an unidentified operating business(es). Usually, a blank check company issues penny stock to finance the process of establishing a business that has not yet come into actual existence. Essentially, a company is granted a blank check to use investors’ funds to fulfill its stated plan. Funds received from a penny stock issue must be deposited in an escrow account for the benefit of the holders.