Reverse Merger: Have They Taken the Reverse out of Reverse Merger?
Are the promoters and consultants destroying the market for Reverse Merger? First lets take a look at reverse merger. In a Reverse Merger, an operating private company merges with a public company that has little or no assets, nor know liabilities (the shell).
In some rare instances, the shell may have some amount of cash remaining for investment in the new enterprise. The public corporation is called a shell since all that exists of the original company is its corporate shell structure and shareholders.
The private company owners obtain the majority of the shell corporation stock (usually 90-95%) through a new issue of stock for the private enterprise or assets.
The public corporation will normally change its name to the private companys name and elect a new board of directors which will appoint the officers.
The public corporation will usually have a base of shareholder sufficient to to meet the 300 shareholder requirement for eventual admission to quotation on the NASDAQ Small-Cap Market, Or some other market.
Now to the problem or the devil is in the details: The...
To view and download this full PLR article, you must be logged in. Registration is completely free. Once you create your account, you will be able to browse, search & downlod from our PLR articles database of over "1,57,897+" on 1,000's of niches and 200+ categories without paying a penny. Click here to signup...
