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Public Shells and Reverse Mergers In the past some companies would go public by doing a reverse merger with a public shell. A reverse merger with a public shell it can be very expensive & dangerous. What are the risks? There are several types of public shells, which are all very expensive. ($250,000 and higher) They are also usually loaded with liabilities and poor acquisition terms. “Pump and dump schemes” are also prevalent and do not match with long term strategic growth plans of most companies. There are also non-trading public shell companies. These reporting companies usually have 1 or 2 shareholders and they are virtually useless. They are a gimmick used by stock promoters to sell you something. It actually takes longer than if you were to just take your own company public from scratch. Many people think you need to do a reverse merger with a public shell to go public, which is incorrect. Others think that doing a reverse merger with a public shell is faster. Again, this is another misconception. To register, get a ticker symbol and start trading in the OTC Pink Sheets is very fast. Later, a company can always move up to the NASD OTC Bulletin Board or NASDAQ. The SEC has made numerous changes that have made a reverse merger with a public shell more difficult and more expensive. It is always recommended you have a very experienced Securities Attorney assist you whenever dealing with Public Shells. If you don’t have a good securities attorney, we will refer one to you for free. If you are considering a reverse merger with a public shell contact us before making any costly mistakes. Going Public the Right and Most Cost Effective Way Filing a registration statement with the SEC is doing it the old fashioned way. It allows you to structure your company exactly the way that you want. Some of the benefits are listed as follows:
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