MECK -Reasons to Buy a Public Shell
There are a number of advantages associated with the reverse merger concept, which are:
Speed. A reverse merger can be completed in just a few months.
Time commitment. If a company were to follow the tortuous path of an initial public offering, the management team would be so distracted that there would be little time left to run the business. Conversely, a reverse merger can be accomplished with such minimal effort that management barely notices the change.
Timing. If the buyer is not immediately intending to use the shell to raise money from the public, it can take the reverse merger path even in weak stock market conditions.
Tradable currency. Being public means that the stock issued by the combined entity is a more tradable form of currency than the stock of a private company, which makes it easier for an acquirer to engage in stock-for-stock transactions. Also, the shares of a public company are frequently valued higher than those of a private one (because the stock is more tradable), so the public company that engages in stock-for-stock purchases can do so with fewer shares.
Liquidity. The reverse merger path is sometimes pushed by the current shareholders of a business, because they want to have an avenue for selling their shares. This is a particular concern for those shareholders who have been unable to liquidate their shares by other means, such as selling them back to the company or selling the entire business.
Stock options. Being public makes the issuance of stock options much more attractive to the recipients. If they elect to exercise their options, they can then sell the shares to the general public, while also obtaining enough cash to pay for taxes on any gains generated from the options.
And so we are told this is the golden age
And gold is the reason for the wars we wage U2
