EXPERTS SEE INCREASED DEMAND FOR REVERSE MERGER
Post# of 85498
John Lowy is the founder (in 1990) and senior partner of www.johnlowylaw.com, and the founder (in 1993) and CEO of Olympic Capital Group, Inc. (www.ocgfinance.com), both based in New York City. John is a highly-respected and acknowledged expert in reverse mergers, capital formation, financial consulting and initial public listings of all types.
In the article Lowy says there are three ways for private companies to go public; (a) the traditional IPO; (b) the so-called “Slow PO;” (c) the relatively new Regulation A+; and (d) of course, the reverse merger.
Lowy says that the reverse merger technique is “by far the quickest, the most sure, and–although it doesn’t raise capital in and of itself—it can be far less expensive than a proposed IPO or a Reg A+ offering if they are unsuccessful.”
In the past 12 months, Lowy says he has seen an increasing demand for clean public “shell” companies, as vehicles for the reverse merger. As a result of the continuing demand, Lowy says “the number of available shells has significantly decreased, causing an increase in the cost to purchase and reverse merge with a public shell.”
Lowy concludes his article by saying
“In order to build a post-reverse merger market, newly-public companies need to have a compelling story, to show Wall Street the significant upside long-term growth prospects of their company. The major upside of a reverse merger is not simply being public—it’s what the company does once it’s there.
So, the consensus opinion of the experts is that reverse mergers, which have been around since the enactment of the Securities Act of 1933, will continue to be a strong, viable alternative to the other ways to go public. And, I strongly agree with that consensus.“
https://pubcoceo.com/2017/09/20/experts-see-i...er-shells/