Alternative Public Offerings (APO)

Of the 222 reverse mergers that were completed in 2007 almost 100 (45%) included a private placement in conjunction with the merger. The private placements averaged approximately $9 million per deal. As previously stated the average market cap per deal in 2007 was $55.55 million. As we move into 2008 we should witness a significant increase in both pre and post merger private placements now that the SEC has reduced the Rule 144 holding period from one year to six months. This new rule which goes effective this month will allow companies to raise capital under better terms and conditions.

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