What Is A Reverse Merger?

In a reverse merger transaction, an existing public “shell company,” which is a public reporting company with few or no operations, acquires a private operating company — usually one that is seeking access
to funding in the U.S.capital markets. Typically, the shareholders of the private operating company exchange their shares for a large majority of the shares
 of the public company. Although the public shell company survives the merger, the private operating company’s shareholders gain a controlling interest in the voting power and outstanding shares of stock of the public shell company. Also typically, the private operating company’s management takes over the board of directors and management of the public shell company. The assets and business operations of the post-merger surviving public company are primarily, if not solely, those of the former private operating company.

We have over 40 years of experience with reverse merger (RM) transactions having successfully completed countless RM transactions with many companies listed on the OTC or NASDAQ exchanges.

If you’re liquidity strategy is being a public company, be sure to contact us.

Reverse Mergers

Why A Reverse Merger?
Advantages Of A Reverse Merger
Trading Reverse Merger Company Stock


Reverse Merger Financing

If your company either doesn’t have or doesn’t want to spend the cash to buy a shell, we have several funds that are interested in investing in pre-public companies.  As long as your company agrees to reverse merge with a public company (shell or non shell), one or more of the funds we work with can pay for the cost of buying the public company, and more.  These funds will invest up to $1M per deal, and possibly can arrange for follow-up capital raises.  Approximately $400K will be used for the purchase of the public vehicle and reverse merger; the balance can be retained by the company for working capital.  The investor fund will get whatever is negotiated, depending on valuation, and it can be structured as equity or debt, or a combo.

One caveat: the funds will not do startup (pre-revenue) companies. Contact us for more information on this unique opportunity.