The reverse merger goes first by way of being used by many small and mid-cap companies, the reverse union of its purchase and its existing public shell company This is with the traditional IPO It is cheap by comparison. This is also a simplified fast track way in which private companies can become public companies.
It's tough. :
15c 211, reverse merger, direct public offering, regulation d, pink sheet
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The reverse merger goes first by way of being used by many small and mid-cap companies, the reverse union of its purchase and its existing public shell company This is with the traditional IPO It is cheap by comparison. This is also a simplified fast track way in which private companies can become public companies.
In the reverse merger, the operating company merges with a public company that has little or no assets, also known debt ("shell"). Shell is the remaining one of the former public company which has ceased to operate by bankruptcy and the liquidation of assets. Some rare instances are new business, investing for some cash remaining in the shell case. Kommuninvest is called "Shell" because all of the existence of the original company is the corporate shell structure and shareholders. Owners of private companies acquire most of Shell's shares (usually 90-95%) through new issuance of private companies or asset shares.
Kommuninvest usually changes its name to the name of a private company and elects a new board of directors to appoint officers. Public companies will usually have to submit to the Nasdaq Small Cap market or to the US stock exchange (if the financial condition of the private company supports other NASDAQ or AMEX requirements) form S-4, use Exchange the combination proposal of registered securities related business. Some Shells have as some 35-50 shareholders, but can now apply for a list (or list on OTC bulletin boards and NQB Pink sheets
The reverse merger may be the fastest way to publish, is it the best? You can look at some of the shortcomings of using reverse mergers to publish your company.
(1). Shell Costs: Shell prices for firms have skyrocketed in recent years because of SEC scrutiny and increased demand for Shells by Chinese firms aiming for publication and trade in the US
Today's public shell prices start at $ 500,000. 00 And people are paying for it. The final cost to reverse the merger with all other costs may be close to $ 1 million.
(2). Greedy Shell Owner: The owner of the shell is not satisfied with $ 500,000. 00 plus he gets for the shell and usually holds 5-15% of the stock for himself.
When the Shell owner's stock comes out, it will cause problems for your stock, at least when you expect it, he sells for a year
When the owner of the shell tells you, he contracts to prohibit doing reverse splitting after all you need than you need him
(3). A slick talk consultant who can sell ice to Eskimo in the middle of winter. He paints a rosy picture and does not warn of possible bumps on the road to the public square.
In many cases, the consultant may at the same time be the owner of the shell, or at least own a portion of the pie, and with the help of a lawyer, pretend his ownership
A consultant must have experience in the financial industry if he does not have a website, most likely he provided a website
The website provides an open forum for consultants to do business, but wants to see what regulators do
I keep the website and write articles as I want the visibility I offer. If you enter the consultant's name on google, often you see if they have been convicted of securities fraud SEC in the past
(Four). Due Diligien: There's a proper Due Diligien huge mall, so the headaches, then the shell, why not? Anger employees, such as the hidden problems hidden, angry investors, product litigation. Or advance financial reporting discrepancies that can cause serious SEC problems.
(Five). Short sellers: When I was a market maker I was among the stockholders of the company that used a certain consultant, among the owners of shellfish and various other gulls, short sellers that stock was out You know that the stock will go when it comes so try to get there first.
For More Information Visit: http://www.genesiscorporateadvisors.com
What is the reverse merger? part 2
Because many reverse mergers were successful when they were successful, we never agree without providing the company with possible problems and solutions.
It's tough. :
15c 211, reverse merger, direct public offering, regulation d, pink sheet
Article body:
Because many reverse mergers were successful when they were successful, we never agree without providing the company with possible problems and solutions.
I will also offer clients the option of reverse merger, such as offer of regulation D, direct public offering, private placement.
One way to make sure that the reverse merger is going to work is to buy one hundred percent of the shares owned by the Shell owner, but missing
If you must have proper due-diligence, you are a salesman who is immune smooth. An alternative reverse merger is direct public offering, DPO.
Shell prices are skyrocketing and are increasing in direct offering popularity as companies are becoming aware of the issues associated with reverse mergers.
And if a company attempts to get a loan, direct public offerings are desirable for investment capital investment, requiring a large portion of the investment capital company, not a passive investor.
Venture capital investors, when it comes to being very involved with the company, make requests that can be detrimental to the company's success, they are your place
Believe that the underwriters have a difficult time getting your company to be the next Microsoft, or someone to do an IPO for you
The IPO is more expensive, time consuming, and takes decisions from your hands Put it in the underwriter.
DPO is targeted to affinity groups such as employees, manufacturers, distributors and customers. These groups are usually familiar with the company and are loyal to it.
DPO's are registered offerings of securities that allow you to sell securities directly to the public. The marketable securities of the internet are available on the stock of your site knowing that there will not be a lot of traffic.
Unless you are google and the investor is looking for you, leave the affinity group as the best source of your funding.
Large companies continue to cut their workforce and leave many talented people with the option of unemployment check, or as their start on the business,
These small businesses have to find capitals to expand or meet orders Small businesses have 20 15 if this creative power had capital while a large business was cutting them You can promote the economy to an unprecedented level.
It is for DPO's "SCOR" small business registration, for companies with revenues of less than $ 250,000 and a market capitalization of less than $ 250,000.
By making a direct public offering, you are raising capital that will not cost you your monthly interest payments, and permanent funds
Investors who do not have to give investors a large part of the company require an unbalanced amount. Private funds are always more expensive in terms of capital and control.
As a public company, you can negotiate better future funding requirements and use company shares for acquisitions. DPO filing requires only three years of audited finance compared to two years for other filings.
All this sound captures the experience of someone who is never in easy reality.
Make it possible to introduce it as needed. Prepare for your promise to prepare your own time. Talk to your company about your investment potential, this gives you an idea as to who is the potential investor.
Keep updated records of your customers and friends in a community that you can contact later. It is necessary to purchase a mailing list if you are a medical product company or laboratory if you know some of your community's doctors
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