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Re: CSykes post# 7080

Wednesday, 10/21/2009 8:19:15 PM

Wednesday, October 21, 2009 8:19:15 PM

Post# of 94785
You are certainly correct as to the sloppy "history" that can accompany a shell company. Usually a lock-up agreement takes care of most of this fallout. An even bigger issue is liquidity which is often non-existent in a newly completed R/M. I can't speak to relative costs but I do know that not having to raise capital is a major advantage of a R/M as is being able to complete the merger in weeks instead of the 8+months that a typical IPO takes. In addition, market conditions are not near as important as they are in an IPO. There are plenty of pros and cons for both paths. Anyway, your thoughts are most appreciated.

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