REW, Should TSIG take a short cut to NASDAQ? This is how it's done!
Suggest it to RG at your next meeting. Perhaps Marty or Rich will pick it up from the thread.
For those, who are asking yourself what a “Reverse Merger” is, right about
now, it is simply one way to take a company public (to get a company listed
on an exchange so that its shares are freely tradable). Many companies
complete Initial Public Offerings and list on an exchange directly,
however, a company can get listed on an exchange to allow for free trading
of its shares quickly and cheaply by completing a “Reverse Merger”. A
company finds a “shell company” which is a publicly traded company with few
shareholders, no business, and little assets, gets acquired by the “shell
company” and then changes the name of the “shell company” to the new
entity. In addition, the company's' stock shares are acquired by the
“shell company” and then the shares of the “shell company” are exchanged
for those of the new entity.
Sound complicated?
The benefit of this is that a company can become publicly traded quickly
and easily, saving months of lag time which would normally by used
completing necessary paperwork to become publicly traded.
What's the catch?
The old “shell company” gets paid for its efforts listing their company on
an exchange by exchanging their shares for shares in the new entity. The amount is usually a small amount of
shares and therefore has little impact on the share dilution.
Enough technical talk, right? We agree.
A “Reverse Merger” is simply a shortcut for becoming publicly traded
quickly.
This is edited from one of my e-mails. The "Reverse Merger" can also be done from a BB company to a NASDAQ company.
Just a short-cut suggestion!
BEST,
Ed
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