Article: Reverse Merger: Have They Taken The Reverse Out Of Reverse Merger?

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 company?s n...
 

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Reverse Merger: Have They Taken The Reverse Out Of Reverse Merger?

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