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