Reverse mergers involve this scenario:
In reverse mergers – also called a Reverse Take Over (RTO) – the shareholders of a private business purchase control of the public shell, merging it with the private company. The private company’s shareholders get the biggest portion of the shares of the shell company, thereby keeping control of its board of directors.
Obviously, the risks concerned with a reverse merger are many, and perhaps a review of the harmful aspects of a reverse merger with a public shell is warranted.
The following are many of the hidden dangers of a reverse merger:
Most established companies have a background, a history, and shareholders. The history and background can be not-so-desirable, and can take many turns: sloppy paperwork and record keeping, legal liabilities, and many other surprises. Furthermore, public shells may have their share of disgruntled investors willing to “dump” at the first occasion, depreciating the market for the company’s stock.
The best going public advice should be sought before contemplating a reverse merger, since many private company officers are inexperienced and not aware of the perils of going public via a reverse merger with a public shell. Our thoroughness and expert guidance can help your company to surmount all the dangers and take your company public in as little as 4 months.
Here are further benefits of taking your company public through our program:
• No need to furnish financial information
• There is no minimum revenue requirement
• Compliance with Sarbanes-Oxley isn’t required
• No asset requirements
For more information regarding a public shell or a reverse merger, and to assist your business to take the next step, please visit www.tcc5.com
The president of Tiber Creek is a knowledgeable securities attorney, in business since 1975, presenting information and consultation regarding public shell reverse mergers.