Advantages of a Reverse Merger

• Timeliness – The SEC reviews each reverse merger that is filed. If you are performing a reverse merger into a company that is listed as a “shell company” you will need to have your audits finalized before you close on the shell. Why? Because the SEC mandates you have to file your 8K within four (4) days from the date you take possession. If the shell has a viable business in it and is not deemed to be a “shell company” you have some leeway when you reverse into the shell. Either way the SEC review process usually takes sixty to ninety days from the time you first file your 8K with the SEC. If time is of the essence and you need to get your deal to market sooner rather than later then the reverse merger is the best route to take.

In contrast a typical IPO takes 9 mos. to a year to complete and, if problems occur, it can take several more months.

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