An Alternative Public Offering (”APO”) provides a way for a company to go public and without having to use traditional methods of filing a Form 10 or S1 registration statement with the Securities and Exchange Commission (the “SEC”). APO is usually associated with a PIPE (Private Investment of Public Equity) funding. The funding can be simultaneous to the closing of a reverse merger or shortly thereafter. Similar to the APO is the Reverse Merger or Reverse Takeovers (“RTO”). The difference is that reverse mergers or RTO’s do not initially include a PIPE funding.

The end result of an APO or reverse merger is that a private company can become a public company in a short period of time (usually 60 days) and begin trading its common shares of stock on the Over the Counter Bulletin Board (“OTCBB”) on an immediate basis. The reason companies take this route versus the traditional registration process is time. And as we all know time is money.

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