A few years ago, it seemed that nearly every company was going public with an IPO to gain capital investment, but now, with this route effectively blocked to smaller companies, entrepreneurs, angel investors and employees are increasingly looking at the opportunity of a reverse merger with a trading shell on the OTC Bulletin Board, the Pink Sheets or Form 10.
Through the reverse merger, your private company merges into a publicly listed company called a shell and gains control. This gives you listed stock that can be leveraged to raise capital.
This whole process might seem shady, but it is not, indeed many well-known companies have gone public through a reverse merger process including Warren Buffett’s Berkshire Hathaway (http://berkshirehathaway.com/), Turner Broadcasting System, Occidental Petroleum, Blockbuster Entertainment and even American Idol (www.americanidol.com)
Investor Peter Klamka of Ann Arbor, Michigan a stake holder in fast growing solar energy company Girasolar Inc (OTC: GRSR) stated that he thinks the best way to go public in the current climate for most private companies, is with a Form 10 shell. It can be the least expensive...
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