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Reverse Mergers are not a new
concept on Wall Street, as a
matter of fact they have been
around for many years.
What is changing about reverse
mergers is the industry
perception and overall number
of RTOs being completed.
There are a number of factors
that drive this trend line,
including the IPO market,
investor and market
perception, the PIPEs
marketplace along with a slue
of other aspects.
Overall, Wall Street is a
beast that is constantly
migrating and will continue to
do so in the future.
That being said, each new product that has a demand and
solid product offering will
etch out there niche market -
in the nano, micro and small
cap environment RTOs have done
just that and have done so in
a way that allows them to gain
the credibility and eye of the
public market investors.
-
Larger Companies utilizing
reverse mergers
-
Investors opening up investment
philosophy enabling them to invest
at earlier stages and companies
that go public via a reverse
merger
-
Market factors, including expenses and timing
-
Raising capital via
PIPEs simultaneous with
a reverse merger
Investors becoming more
and more comfortable with
investing in bulletin board
and pink sheet companies -
often the first exchange in
which an RTO company will
trade on for a minimum period
of four months.
HISTORY
In the past there was always a negative taint to the reverse
merger industry. This is
mostly due to the
status of the companies
utilizing RTOs, the companies
using RTOs, the
players, and the agendas of
high fee transaction based
consultants and bankers. From
the graph below you can see
that the overall number of
RTO's has been
dramatically
increasing while the number of
IPOs has not been favorable
overall.
Show Graph illustrating number
of reverse mergers in the last
four years and IPOs - also
projected if possible.
Source: PIPEs Report
CAPITAL RAISING PROCESS
See
Financing / PIPEs |
Industry Links
Following the link
below will enable you to find a number of very useful
sites for public companies, the micro-cap environment
and various other industry related sites.
Investment
Links
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Industry
Definitions
Following the link
below will enable you to find a number of very useful
definitions for public companies, reverse mergers and
other investing terms.
Investment
Definitions
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