Everything you need to know about Reverse Shell Mergers by Ralph Amato
Now is probably one of the best times for a company to go public via a reverse merger. Shell prices are depressed so a company can purchase an OTCBB shells at steep discounts. The process is streamlined and allows a company that has already been audited to be public in thirty to sixty [...]
If you are seeking access to capital then 2009 might be the time to consider taking your company public. The valuation of a public company is usually three to four times that of a private company. You can sell stock to potential investors (equity) and give up far less of the company than [...]
Now is the time for companies to revise their business plans for next year. If you plan for the worst-case business scenario you can survive these tough economic times. Your planning should include alternative ways to fund your company over the next two years. The vicious credit crunch will affect all companies [...]
Acquire Rather than Expire
So now that I have painted this rather grim picture let me tell you why I think the current market crisis also provides one of the greatest opportunities for emerging growth companies over the two years.
Lets face it. Only the strong will survive over the next two years. With survival [...]
Competition of a different Form
Jim Furey of Furey Research Partners, an institutional research boutique that specializes in small-cap strategy, states the following: at recent market lows 59% of the small cap Russell 2000 index stocks were trading below $10 and more than half carried market values below the $250 million level that is commonly described [...]
New Competition
Emerging growth companies will also experience competition from all of the public companies whose shares have been decimated by recent market selloff based on fear. Remember, most investors risk their money in new companies because of the huge upside potential. What happens when investors see that same potential in established companies with [...]
Listing on AIM
In conclusion, the biggest difference between a US listed company and an AIM listed company; NO Sarbanes-Oxley compliance. Listing on AIM eliminates the SEC governmental review process of the prospectus, the multitude of periodic regulatory filings and mandatory financial reporting requirements.
The reason US and foreign companies are flocking to AIM is because [...]
Listing on AIM
In the U.S., the IPO or DPO prospectus has to go through several SEC comment letters and responses before the company’s registration statement can become effective (approved). The Company must then either file a 15-C2-11 with FINRA to gain trading status on the OTCBB or if it qualifies and is raising capital [...]
Listing on AIM
The Nominated Advisor or “Nomad” acts as the sponsor or representative of the company who will be listed on AIM. The Nomad prepares the prospectus and gets the issuer admitted for trading on AIM. The Nomad also assists the company is raising its initial capital, the sweet spot being the $10MM and $20MM [...]
AIM Overview
AIM, operated by the London Stock Exchange, tends to work best for companies that have a capitalization and valuation from $20MM US to $300MM US. Filing or entry costs, excluding fundraising, are approximately $600,000 US, with ongoing yearly costs of around $100,000. Capital raisings activities tend to be in the $4MM to $40MM US [...]
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