There are two parts that comprise an APO; the reverse merger and the PIPE.  In the reverse merger, the private company becomes public by merging with or being acquired by a public “shell” company.  The shell corporation or company is a public company that has maintained its financial reporting and is compliant with its SEC filings but, in essence, has no assets or liabilities.  When the private company merges into the public shell, the new company will start trading and usually request a name change to the new company’s name and restructure the capitalization (number of issued and outstanding common shares).   The new company then files what is commonly referred to as a Super 8K with the SEC which describes in detail the entire reverse merger of APO transaction.

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Other posts of the serie

  1. Alternative Public Offering – Part 1 - May 5, 2009
  2. Alternative Public Offering – Part 2 - May 6, 2009
  3. Alternative Public Offering – Part 3 - May 7, 2009
  4. Alternative Public Offering – Part 4 - May 8, 2009
  5. Alternative Public Offering – Part 5 - May 12, 2009
  6. Alternative Public Offering – Part 6 - May 13, 2009
  7. Alternative Public Offering – Part 7 (This post) - May 14, 2009
  8. Alternative Public Offering – Part 8 - May 15, 2009
  9. Alternative Public Offering – Part 9 - May 16, 2009
  10. Alternative Public Offering – Part 10 - May 18, 2009
  11. Alternative Public Offering – Part 11 - May 19, 2009
  12. Alternative Public Offering – Part 12 - May 20, 2009
  13. Alternative Public Offering – Part 13 - May 21, 2009
  14. Alternative Public Offering – Part 14 - May 22, 2009
  15. Alternative Public Offering – Part 15 - May 25, 2009
  16. Alternative Public Offering – Part 16 - May 26, 2009
  17. Alternative Public Offering – Part 17 - May 27, 2009
  18. Alternative Public Offering – Part 18 - May 28, 2009
  19. Alternative Public Offering – Part 19 - May 29, 2009
  20. Alternative Public Offering – Part 20 - May 30, 2009