The Denver Business Journal - July 28, 2006
by Renee McGaw
Denver Business Journal

Don’t suggest to Tim Keating, President of Keating Investments, that reverse mergers have a less-than-stellar reputation. He’s heard it all. He even used to keep a file of negative press clippings, until he got bored with it and stopped.
But in the past few years, several things happened: Sarbanes-Oxley legislation, which made it more expensive for companies to go public. A probe of Wall Street research practices by New York Attorney General Eliot Spitzer, which has resulted in many firms reducing analysis of smaller companies. And a lackluster IPO market that has discouraged all but large companies from attempting to go public.
“The IPO market is shot for small issuers,” Keating said.
The result? Many are turning to a once-spurned corner of the market. A reverse merger typically occurs when a private company merges into a smaller public company, often a publicly traded “shell” with no assets or operations.
One of the best-known reverse mergers happened in March, when the New York Stock Exchange combined with Archipelago Holdings Inc.
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http://denver.bizjournals.com/denver/stories/2006/07/31/story4.html

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