Found this on another website. Hopefully it is ok to post this. If not delete it please.
2. Reverse merger with an already existing public company (Shell)
This method consists of acquiring an already existing Public Shell Company. It permits private company shareholders to buy a publicly listed company, or shell, that has no substantial business activity. In a Reverse Merger, the shareholders of the private company purchase control of the public shell company. The next step is to merge the public shell company with their private company. Consequently, the shareholders of the private company receive all or most of the shares of the public company and nominate and control its board of directors.
Our future partners should keep in mind the following:
The technology of merger and acquisition is by itself well known to the owners and leading managers in countries with developing economies, but in this case the object of a merger is a public shell company. By acquiring such a company you are purchasing an instrument on which qualities will depend on the reorganization of your business. It is evident that the better the instrument is the more money it will cost. Normally the price starts at 250 000 $ and more. But no matter how expensive is the public shell company that you acquired, before the reverse merger is completed your company will be subject to a lengthy (sometime up to a year and a half) verification.
The following table is a price/quality estimate of various shells conducted by our specialist:
Types of Shells
SHELLS ADVANTAGES DISADVANTAGES
Non-reporting,
Non-trading: Most conservative,
least expensive,
review by SEC,
no existing trading history Slowest
Non-reporting,
Trading:
(Pink Sheets) Less expensive,
review by SEC Esisting trading
history, slower
Reporting
Non-trading Faster, no existing
trading history More expensive,
potentially no
review by SEC
Reporting
Trading Fastest Existing trading
history, potentially
no review by SEC,
most expensive,
least conservative
