Locan, Inc. (fka LOCN)

[peterminator]

RM vs IPO from http://www.allbusiness.com/finance/3591808-1.html

An IPO is a time-consuming, expensive process. In a reverse merger, the process takes significantly less time and money. In fact, it can sometimes be accomplished in 45 days instead of the year or more frequently needed for an IPO. The reduced time frame lets key executives concentrate more on continuing operations and planning for the future and less on meeting with underwriters, lawyers, and outside accountants. The more management is distracted from their normal duties and functions, the more likely there will be a detrimental effect on the company's operations. Such effects can be particularly disastrous at the time of an IPO and immediately thereafter. The extended period of time in an IPO also increases the risk that market or industry conditions may deteriorate and eliminate the window of opportunity. Internet companies such as Stamps.com Inc., Nettaxi Inc., and PhotoLoft.com Group Inc. were able to go public through reverse mergers while the market was "hot" for dot-corns.

On the expense side, a reverse merger may be accomplished at a cost of $75,000 to $100,000 vs. $400,000+ for an IPO (not including sales commissions, which may add another 10% or more). These estimates don't include savings in management time spent on a reverse merger instead of an IPO. iChargeit Inc. estimated the cost of an IPO to be $3 to $5 million in underwriting fees, but it was able to do a reverse merger for about $300,000.

In addition, there are no sec registration or Blue Sky fees in a reverse merger. There are filing fees, though, which are significantly less.