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Below
are links that relate to
Reverse-Mergers, Corporate shells
(public shells) and other helpful
information. These resources
will help give you a better
understanding of how a public shell
can help the image of your company,
while helping it's financial ability.
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Links
of information
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How
companies can go Public without an IPO
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Benefits
of a public shell reverse merger vs.
going public
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What
is a Reverse-Merger and how can it
benefit my company?
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Amazon.com
Book: "Going Public"
$19.77
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Online
Shell Exchanges
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[SEC]
Use of Form S-8 and Form 8-K by Shell
Companies
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Investopedia.com - your complete, unbiased, and easy to understand educational guide to investing and personal finance. The site includes the most comprehensive investing dictionary on the web as well as tutorials and articles covering just about every area of the market.
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will also help answer many of the most
common questions your company may have
about the process and what it's effect
is. |
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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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