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We
have the ability and the experience
to assist you to become a public company
much more economically efficient and
time efficient, than an IPO. If your
need is to become private again for
your many reasons we have the experience
and ability to help you also.
We
have combined 87 years of experience
in the Public markets. Our expertise
is in corporate finance, funding,
capital formation, consumer marketing
and investor relations. Combined,
we have assisted roughly 30 companies
in going public through SB-2 registrations
and reverse mergers and have raised
an excess of 94 million for our clients.
Besides the experience and expertise
of our associates and us, we are also
part of a much larger virtual organization
that includes veteran legal, accounting
and public relations expertise from
around the world. These individuals
have had years of experience first
hand, and have worked with us on various
projects and can be immediately called
upon for assistance. We believe we
are well equipped to service the needs
of you and your clients. Should you
choose to work with our organization,
you will find us to be competent,
thorough and responsive.
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| What
are the benefits of public trading status? |
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The
long term benefits of being publicly
traded are many: improved liquidity,
higher company value, the ability
to make acquisitions or attract and
retain employees with the newly public
companies stock and greater access
to capital at a lower cost. In addition,
having public trading status allows
a company the ability to make acquisitions
with their stock, since publicly traded
stock is viewed as currency for mergers
and acquisitions. More over, public
trading status often leads to a higher
price for a later offering of a companies
securities.
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| How
do these two methods differ from going
public through an IPO? |
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By
going public in one of these two ways,
a private company becomes publicly
traded at a lower cost, in a shorter
time frame, and with less stock dilution
than through an initial public offering.
In essence, these methods separate
the process of going public from the
process of raising capital.
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| What
is a Reverse Merger? |
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A
"reverse merger" is a transaction
by which a private company can merge
with a publicly traded company with
no assets or liabilities. The public
company is sometimes called a "shell"
since often all that exists of the
company is the corporate shell structure.
By merging into such an entity, a
private company becomes public. The
merger of the privately-held company
with the public shell is a achieved
through the exchange of shares of
the privately-held for the shares
of the publicly-owned company.
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For
a reverse merger involving a public
shell, the private company can control
as much as 80-90 percent of the outstanding
shares of the companies stock. The
remaining 10-20 percent is held by
the previous share holders of the
public shell and by promoters of the
merger. While the process results
in some dilution to the private company
merging in, the increase of Valuation
to the company as a result of the
new trading market, often outweighs
the dilution cost.
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The
cost of merging into a public shell
company depends on a number of factors,
including whether the company is a
reporting company. Because of the
effort involved in registering securities,
this type of shell has more value.
The total cost for a company going
through a reverse merger process is
substantially less than the cost for
an IPO.
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If
you are dissatisfied in being a public
company, we can assist you to "Reverse
Out" of being a public company.
You now would own a hundred percent
of your company as a Private Entity,
totally eliminating your previous
dissatisfactions. Life becomes less
complicated for you, eliminating all
your reporting requirements.
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Links
to helpful information about Public
Shell Reverse Mergers
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Web Directory - Database of
Resources including Financial Services
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