There was much discussion about Chinese companies seeking listing on the OTCBB. Last year 69 companies originating out of China did a reverse merger into an OTCBB shell. There are a tremendous number of private companies with a history of revenues and profits that are looking to US markets to gain much needed access to capital. By reversing into a shell Chinese based companies can provide not only transparency but also liquidity to investors. Most of the deals coming out of China have substantial revenues and profits and valuations of the companies are such that they attract US investors.
I predict we will see substantial increase in the number of China based companies seeking reverse mergers in the next five years. There is a multitude of information I could share with my readers about companies coming out of China but I can not do the subject justice in this space. Stay tuned for my upcoming series on this subject.
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