Pampered Pooches Inc.’s Merger With Sit Means Sit Inc.

Discuss the topic of registering shares after the two companies’ merger.

Pampered Pooches, Inc. proposes a merger with Sit Means Sit, Inc. Assume that before the merger, Paulie Smith owned 25% of SMS stock that he purchased three years before in a private placement. Is it necessary to register the Pampered Pooches shares? May Smith freely resell his Pampered Pooches shares? Would it matter whether the shares were registered in connection with the merger? Provide your thoughts with valid arguments.