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upstartco

04/13/15 3:51 PM

#21844 RE: Prophetic10 #21842

To answer your question


Disadvantages of Reverse Mergers

The following are the disadvantages of a reverse merger:
Some reverse mergers come with unseen circumstances, such as liability lawsuits and sloppy record keeping.
Reverse stock splits are very common with reverse mergers and can significantly reduce the number of shares owned by stockholders.
Many chief executive officers (CEOs) of privately traded companies have little or no experience running a publicly traded company.
Many reverse mergers do little of what is promised and the company ends up trading on the OTC bulletin board and providing shareholders with little to no additional value or liquidity.

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