H-D International Holdings Group (HDIH)

[Don Beasley]

Again, Here is Another Good Example

In the sense of remaining objective and passing along useful information I have put together some more. Notice how I reference source material and allow an opinion to be formed on the basis of that information alone.

Recently approved SEC proposals may also benefit smaller public companies by providing a more favorable regulatory environment for those involved in the capital formation process.

Since 1999, however, the SEC has established new rules regulating reverse mergers that have brought integrity to the transactions.

Nimish Patel, a lawyer specializing in reverse mergers at Richardson & Patel LLP, believes that the opportunity for liquidity has driven what is known as the Private Investment in Public Equity or "PIPEs" market.

However, as these funds now have a tremendous amount of money to deploy, they have started looking at companies that are still private in order to get a good return for their investment. The condition is that the private company has to do a reverse merger in order to get the funding from the PIPE fund. According to Patel, "This is how reverse mergers became 'mainstream' as a weapon of choice to attract PIPE financing."

Source Information

This can provide some insight to help individuals who choose to look at the possibilities.