Regional Brands Inc. (RGBD)

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Just a nice little interview Bronson did on reverse mergers a few years ago. Yet another reason why I like him and when you are taking a stake in one of his shells, this is a legit guy who looks for top value and businesses for his shells, not just any old deal.

http://www.catalystfinancial.com/uploads/2011_News_Release_SNB_Speaks_at_BioWorld_Insight.pdf

Steven Bronson, founder, chairman and CEO of investment banking fi rm Catalyst Financial LLC, said the success of a reverse merger is driven by two factors. The first, and most important, is “execution of the business model,” he said. The shell company is making a bet that the technology being developed by the private firm will work, and in the biotech industry, that’s always a risky bet.

The second factor Bronson cited as critical to the success of a reverse merger is sponsorship. Unlike initial public offerings (IPO), reverse mergers don’t involve investment bankers trotting management around to meet with institutional investors, raising awareness and creating a shareholder base. Thus, like fi rms that go public on a foreign exchange and then transfer to the OTCBB, or those that go public via the Form 10 pathway, visibility and volume can be very low at first.

But “ultimately, it’s about the success of the business,” Bronson said.