Saturday, November 21, 2009

The Truth About Reverse Mergers and Public Shells

There are respective types of public shells, which are all very expensive. They are also usually loaded with liabilities. If you change by reversal merge a company into a public shell (which usually have 100 or more than shareholders and a batch of shares in the float) when the stock terms travels up these 100 shareholders inevitably sell the stock and the terms collapses. This tin be damaging to a company trying to turn through acquisition. This is far more than expensive than the up front terms paid to make the contrary merger with the public shell. Please maintain this fact in head when you are dealing with contrary mergers or public shells. This point is absolutely critical to understand. If you make not understand the importance of the public float your going public experience can be disastrous.
There are also non-trading public shell companies. These reporting companies usually have got 1 or 2 shareholders and they are virtually useless. They are a dohickey used by stock boosters to sell you something. It actually takes longer than if you were to just take your ain company populace from scratch. The non-trading shells just add an extra measure and make not salvage you anytime whatsoever. In fact they take longer than if you were just to begin the procedure from scratch.
Many people believe you need to make a contrary merger with a public shell to travel public, which is incorrect. Others believe that doing a contrary merger with a public shell is faster. Again this is another misconception. For example, to begin trading on the Pink Sheets is very fast. A company can always travel up to the NASD OTC Bulletin Board or NASDAQ later. Some companies take to begin out on the Pink Sheets and later travel up to NASDAQ or the NASD OTC Bulletin Board. A company can also elect to get trading on the NASD OTCBB from the outset.
Also recent changes in the law have got made many patterns dealing with contrary mergers and public shells fraught with problems. It is always recommended you have got a very experienced Securities Attorney help you whenever dealing with Populace Shells. If you are considering a contrary merger with a public shell contact us before making any costly mistakes. We would be happy to explicate why there are better, quicker, easier and less expensive ways of going public.
We help companies in Going Populace fast. Any company can Travel Populace and have got its ain stock symbol. There are nearly 15,000 populace companies in the U.S. We can assist your company Go Populace on the NYSE, AMEX, NASDAQ, OTCBB or Pink Sheets.
The NASD OTCBB (over the counter bulletin board) as well as the Pink Sheets have got NO plus and NO gross requirements. Most of the smaller companies travel public first on either the NASD OTCBB or the Pink Sheets. They can quite easily travel up later to NASDAQ.
In fact, if a company is interested in Going Populace they may desire to get trading on the Pink Sheets. There are NO audits, NO periodical second reporting and they make not have got to deal with Sarbanes Oxley. It also is very fast and relatively inexpensive. A company can initially get trading on the Pink Sheets if they desire to go public quickly and, if they choose, can merchandise on the OTCBB later very easily.

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