GRN Holding Corp (GRNF)

[brooklyn1955]

Also part of this process is a funding component. A hedge fund or bridge loan investor (Justin Costello's GRN Funds, LLC) will normally front the money to cover the cost of the reverse merger ($300,000) and then a larger investor may come in to fund an acquisition or major marketing plan for the company.

Another positive aspect of this type of transaction is that a public company (ie. new symbol GRNF) can often be worth more than a private company (GRN Fund, LLC) with the same earnings. For instance, a private company with $5,000,000 ( GRN Funds, LLC)- 1.5 Billion) in gross income and $1,000,000 in net income may only be worth $5,000,000 (ie GRNF 1.5 Billion). On the other hand a public company with those same numbers may be worth $10,000,000 (ie, GRNF-3-15 BILLION) based on a price to earnings ratio of 10, which is not at all uncommon.

Therefore, companies that are looking for a growth capital opportunity may want to review the reverse merger process and consider the benefits that may be derived from such transaction.