The thought processes of going public through a reverse merger are quite different for foreign companies versus their US counterparts. Consideration of revenues and profits of foreign companies differ greatly from the investor’s point of view. Most foreign companies will not try to attempt a reverse merger or financing unless they have a minimum of $2MM to $5MM of net income. In contrast, with a US based company, it is not uncommon to have a technology or biotech company that is pre revenue and profit trying to perform a reverse merger. Financing a US based company that is considered developmental is doable whereas such a scenario would never fly with a foreign company. For the most part US investors seek foreign deals that have both revenues, profits and are priced below market.

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