Going Public in Today’s Market – Part 9

Going the Reverse Merger Route

The reverse merger into an OTCBB shell process is a major shortcut to the finish line. The shell has been previously approved as a fully reporting company by the SEC and has been approved for trading by FINRA. The company will have to complete their PCAOB audit prior to reversing into the shell and will need to have their SEC attorney file a “super 8K” with the SEC outlining the reverse merger transaction, inclusive of reverse or forward split of the stock, changes in officers and directors, etc., but the shell is trading during this entire process. Keep in mind the super 8K is more of an “informational” filing and, though you may receive comments from the SEC, it does not require approval by the SEC. Once you have completed the reverse merger you will file to change the cusip number and name of the corporation with FINRA.

This type of transaction works extremely well for companies that have funding lined up, have timing issues or want to get publicly traded as soon as possible. The reverse merger is the vehicle of choice for foreign companies seeking to get listed in the US.