There are certain circumstances where it is in the best interests of a company to perform a Direct Public Offering or DPO instead of the reverse merger. If your company is a startup or a development stage company, has little or no revenues or profits then the best route could be a DPO. This gives the emerging growth company additional time to gain traction with its business model while simultaneously experiencing the going public process. Taking your company public requires the company to file an S1 registration statement with the SEC. From there you will slowly work your way through the process of several rounds of SEC review and comments followed by responses by your company’s counsel before your registration statement goes effective (is approved). This process is long and tedious and usually takes nine months to one year from start to finish.

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Other posts of the serie

  1. Direct Public Offering – Part I - March 25, 2008
  2. Direct Public Offering – Part II (This post) - March 26, 2008