The definition of a Reverse Merger is
The joining together of a public company and a private company, allowing the private company become a publicly traded corporation without a registration statement. New regulations now require a company to file the same information in a registration statement, making a reverse merger useless.
“Reverse merger” is a way by which a private business can become a public corporation. The reverse merger is an alternative to the traditional IPO (initial public offering) as a method for going public. Many persons don’t recognize there are plentiful other ways for a private company to become publicly traded, outside of doing an IPO or a reverse merger.
A reverse merger is a complex method that a private company uses to become a publicly traded corp. A reverse merger happens when a public company that is no longer actively involved in business, with limited assets, joins together with a private company. The private company then does a reverse merger into the public shell company, that now becomes a new operating company and perhaps changes name to echo the newly formed company's business endeavor. Reverse mergers can also be referred to as reverse takeovers, or RTO's.
The going public process is attractive to businesses because after becoming a public entity, the company can use its stock as currency to buy assets, other businesses, to draw quality administration, and to trade for advertising, as well. Raising capital becomes easier to accomplish as a public company because investors now have a clear exit strategy; and company directors can create extensive wealth if the company performs well.
Over The Counter Bulletin Board
We will take your company public without the use of an over the counter bulletin board shell.
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