This entry is part 14 of 14 in the series Reverse Mergers Attract Foreign CompaniesIn contrast the differences in investing in a US based company versus a foreign company are significant. US based companies get higher valuations and in some ways have less risk. Companies have a greater awareness of SEC and SOX compliance and [...]

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This entry is part 13 of 14 in the series Reverse Mergers Attract Foreign CompaniesThere are several other areas of concern that US investors must address when investing in foreign companies. This can include but not limited to release of funds from escrow in traunches based upon the company’s use of proceeds. Other conditions usually [...]

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This entry is part 12 of 14 in the series Reverse Mergers Attract Foreign CompaniesOther terms and conditions for investment in a foreign company can include prepayment of the first year’s attorney, accountant and consultants fees along with $500,000 for investment awareness programs with a “use it or lose it” clause. Terms and conditions can [...]

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This entry is part 11 of 14 in the series Reverse Mergers Attract Foreign CompaniesBecause of the cultural differences and risk factors associated with foreign deals it is not uncommon for US based investors to dictate certain terms and conditions that are unique to these types of investment. One of the biggest areas of concern [...]

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This entry is part 10 of 14 in the series Reverse Mergers Attract Foreign CompaniesForeign deals are valued differently than US deals. The goal for the foreign company is not to get listed on the OTCBB but to gain listing on an exchange like AMEX or NASDAQ. To do this they have to demonstrate earnings [...]

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This entry is part 9 of 14 in the series Reverse Mergers Attract Foreign CompaniesInvestment in a foreign company is treated in a much different manner. This is due the inherent risk factors. Investors are keenly aware they have little recourse if a foreign company does not perform. Most of these emerging growth companies are [...]

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This entry is part 8 of 14 in the series Reverse Mergers Attract Foreign CompaniesThere terms and conditions of financing a US based versus foreign company are as different as night and day. Most US based companies have a tendency to give their companies much higher valuations than they deserve. Investors are usually split into [...]

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This entry is part 7 of 14 in the series Reverse Mergers Attract Foreign CompaniesThe 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 [...]

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This entry is part 6 of 14 in the series Reverse Mergers Attract Foreign CompaniesThere are many cultural differences between US investors and management of foreign companies. US investors have certain expectations when they make an investment in a company, regardless whether it is foreign or domestic. In most cases they expect a substantial ROI [...]

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This entry is part 5 of 14 in the series Reverse Mergers Attract Foreign CompaniesMost foreign companies have grown organically and originate from countries that have not established financial markets and therefore there is no access to capital. These companies are patient and have bootstrapped their way to success by growing their companies through internal [...]

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