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Re: trader53 post# 64634

Sunday, 06/30/2019 3:50:00 PM

Sunday, June 30, 2019 3:50:00 PM

Post# of 79848
ADTM - Guide to "Reverse Merger" Transaction




_________________________________________________________________


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.


http://www.legalandcompliance.com/reverse-mergers/

________________________________________________________________


Guide to Reverse Merger Transaction


* 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.



A “shell company”
a public traded company with

(1) no or nominal operations and

(2) either no or nominal assets
or assets consisting solely of
any amount of cash and cash equivalents.



The Cost of the Shell

In a Reverse Merger transaction,
the private operating business
must pay for the public shell company.


That payment may be in cash, equity or both.

The average cash value
of a fully reporting public entity
with
* no liabilities,

* no issues
and which is otherwise

* “clean”
is between $280,000 – $400,000.



http://www.legalandcompliance.com/reverse-mergers/





_________________________________________________________________


ADTM - Targets 0.0006 / 0.0015 / 0.0023 / 0.0075


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