Reverse Mergers

Reverse Mergers

A reverse merger is the most common alternative to an initial public offering (IPO). Reverse mergers allow private companies to go public by acquiring a controlling interest in, and merging with, a publicly traded shell.

In a reverse merger transaction, private company shareholders exchange their shares of the private company for either new or existing shares of a publicly traded shell so that at the end of the transaction, the shareholders of the private company own a majority of the publicly traded shell and the private company has become a wholly owned subsidiary of the publicly traded shell. The pre-closing controlling shareholder(s) of the publicly traded shell either return their shares to the publicly traded shell for cancellation or transfer them to individuals or entities associated with the private company. At the closing, the private company has become publicly traded by acquiring a controlling interest in a publicly traded shell and the publicly traded shell assumes the operations of the private company.

We can provide you assistance with reverse mergers and publicly traded shells by:

  • Providing you with a clean and competitively priced publicly traded shell.
  • Completing all of the necessary steps of your reverse merger transaction.
  • Assisting you in listing your company in the Bulletin Board (OTCBB) or on the OTC Markets in either of the OTCQX, OTCQB or OTCPink listing tiers.
  • Introducing your newly merged publicly traded company to institutional investors here in the U.S. and overseas to help simplify your capital raising process.
  • Connecting you with broker dealer firms that function as market makers and equity research analysts to provide your company’s stock with liquidity, pricing support and media coverage.

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