A Reverse Merger allows a privately held company to go public by acquiring a controlling interest in, and merging with, a public operating or public shell company.
In a Reverse Merger process,
the private operating company shareholders exchange their shares of the private company for either new or existing shares of the public company
At the end of the transaction, the shareholders of the private operating company own a majority of the public company and the private operating company has become a wholly owned subsidiary of the public company.
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